The negotiability of an instrument is affected by a statement of the transaction that gave rise to the instrument.

Question

Quizplus · Accepted Answer

The negotiability of an instrument is not affected by a statement of the transaction that gave rise to the instrument. Negotiability depends on certain essential characteristics, such as being in writing, expressing an unconditional promise or order to pay, being payable on demand or at a specific time, being payable to the order of a certain person or to bearer, and being transferable by delivery or endorsement.

The Negotiability of an Instrument Is Affected by a Statement