A negotiation may be valid to transfer the instrument even under which of the following condition(s)?
A) The negotiation is made by an infant.
B) The negotiation is part of an illegal transaction.
C) The negotiation is made by a person without capacity.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Negotiations made by an infant, as part of an illegal transaction, or by a person without capacity can still result in a valid transfer of the instrument. This is because the negotiability of an instrument is designed to facilitate its free and unimpeded transfer in commerce, and these conditions do not necessarily void the negotiation or the transfer of rights under the instrument.

A Negotiation May Be Valid to Transfer the Instrument Even