Asked by sourav saharan on May 29, 2024
Verified
On an instrument, a mere reference to another writing-"As per contract"- does not render the instrument nonnegotiable.
Nonnegotiable
Nonnegotiable describes an item that cannot be transferred or endorsed to another party, often because it is final and not open for discussion or modification.
Reference
An act of mentioning or alluding to something or someone, often used for validation, citation, or acknowledgment in academic or professional contexts.
Instrument
is a legal document formally executed and capable of creating rights and obligations, such as contracts, wills, or checks.
- Perceive the role of terms and conditions in determining an instrument's capacity for negotiation.
Verified Answer
SN
Sandile NokuthulaMay 31, 2024
Final Answer :
True
Explanation :
The mere reference to another document for additional terms does not affect the negotiability of an instrument as long as the reference does not state that the instrument is subject to or governed by the terms of the referenced document, which would then incorporate those terms into the instrument itself.
Learning Objectives
- Perceive the role of terms and conditions in determining an instrument's capacity for negotiation.