References to other agreements in negotiable instruments:
A)destroy negotiability unless the recital makes the instrument subject to, or governed by, the terms of another agreement.
B)do not destroy negotiability in any circumstances.
C)do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement.
D)None of the above.

Question

Quizplus · Accepted Answer

References to other agreements do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement. This means that if the instrument refers to another agreement, it does not automatically lose its negotiability, but it depends on the language used in the reference. If the language makes it clear that the instrument is subject to the terms of the other agreement, then negotiability may be affected.

References to Other Agreements in Negotiable Instruments