References to other agreements in negotiable instruments:
A) destroy negotiability unless the recital makes the instrument subject to, or governed by, the terms of another agreement.
B) do not destroy negotiability in any circumstances.
C) do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement.
D) None of these.

Question

Quizplus · Accepted Answer

References to other agreements in negotiable instruments do not destroy their negotiability unless the instrument explicitly states that its terms are subject to or governed by another agreement. This maintains the instrument's independence and ease of transfer, which are key characteristics of negotiability.

References to Other Agreements in Negotiable Instruments