Asked by Ethan Berumen on Jul 25, 2024
Verified
A lack of good faith will be imputed to a party when she is negligent in discovering something is wrong with the instrument.
Good Faith
The principle of honesty and fairness in dealings, implying a sincere intention without deception.
Negligent
A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended harm.
Instrument
A written legal document that formalizes an agreement or obligation between parties or is used to create a formal record.
- Understand the significance of good faith and consideration in transactions involving negotiable instruments.
Verified Answer
Learning Objectives
- Understand the significance of good faith and consideration in transactions involving negotiable instruments.
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