Which of the following would be considered an exception to the rule that the loss from a forged instrument falls on the party who first takes the forged instrument after the forgery?

Question

Quizplus · Accepted Answer

Option A is a valid exception to the general rule, as the drawer or maker of the instrument bears the loss if the forgery is due to their own negligence. Option B is also an exception as the loss falls on the party who first takes the forged instrument after the forgery. Therefore, option D is correct as it encompasses both A and B. Option C is not an exception to the rule as it pertains to a scenario where there is no forgery at all. Therefore, option E is also incorrect as it includes option C.

Which of the Following Would Be Considered an Exception to the Rule