Home Negotiable Instruments What Will Not Affect Negotiability?

What Will Not Affect Negotiability?

What Will Not Affect Negotiability?

The first important factor that might, at
first glance, appear to affect negotiability of negotiable instruments, but is
in fact exempt under the
Uniform Commercial Code (UCC), is the date on the face of the instrument, or even
whether or not the instrument is undated. Business negotiations are often
extended proceedings and the exact date on which a negotiable instrument will
be marked may vary widely. Some might be worried that the UCC contains
provisions which would significantly concern the date attached to the
negotiable instrument

Next, as business negotiations are often
lengthy, sometime
s negotiable instruments will be modified
after they are initially drawn up. This will often involve typewritten addenda
or alterations to the negotiable instrument
. Even handwritten notes make make their way
onto a given negotiable instrument. Many in business negotiations would then
worry that the negotiability of the instrument would be compromised under the
UCC. But in fact, these alterations are generally acceptable and do not
undermine the overall negotiability of the instruments. Some alterations might
affect the negotiability of the instrument, depending upon the exact content of
those notes

Leaving out certain pieces of information
will likewise do nothing to prevent an instrument from being considered
negotiable. For all that business negotiations seek comprehensiveness,
sometimes information will be left out of such a negotiable instrument
s. In other instances, such information will purposely be
left out, such that those values will default to whatever is listed or
determined by the UCC.

Finally, if the negotiable instrument specifically has a note on it that
says that it is “non
negotiable” or “not governed by Article 3,” it still may
remain negotiable if it is a check. Such notes would not
affect a check’s negotiability because a check is a specifically defined form
of negotiable instrument. Any other negotiable instrument, however, might be
made non