If an instrument meets all of the formal requirements required for negotiability, _____.
A) it is negotiable even though it is void or unenforceable for other reasons
B) it cannot be held by a person who had no notice of certain defenses against payment
C) its validity is automatically conferred
D) it is nonnegotiable if uncollectible

Question

Quizplus · Accepted Answer

An instrument that meets all of the formal requirements is a negotiable instrument even though it is void, voidable, unenforceable, or uncollectible for other reasons. Negotiability is a matter of form and nothing else. An instrument that is negotiable in form is a negotiable instrument even though it is issued by a minor.

If an Instrument Meets All of the Formal Requirements Required