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Asked by Katlyn Holder on Jul 02, 2024

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If an instrument fails to qualify as a negotiable instrument, it means that it could still be an enforceable contract, but the special rules regarding negotiable instruments do not apply.

Enforceable Contract

An agreement between parties that is legally binding and can be upheld in a court of law.

Negotiable Instruments

Financial documents that are transferable from one person to another, designed to guarantee the payment of a specific amount of money either on demand or at a set time.

Special Rules

Specific regulations or guidelines designed to address particular scenarios or areas within a broader regulatory framework.

  • Discern between instruments that are negotiable and those that are non-negotiable.
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Daryl Stuteville6 days ago
Final Answer :
True
Explanation :
Negotiable instruments are governed by specific rules that facilitate their transfer and the rights of the parties involved. If an instrument does not meet the criteria to be considered a negotiable instrument, it can still be a valid and enforceable contract under general contract law, but it won't benefit from the special provisions and protections that apply to negotiable instruments.

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