A party who signs a negotiable instrument without knowing that it is, in fact, a negotiable instrument, can claim negligence as a defense.

Question

Quizplus · Accepted Answer

Negligence is not a valid defense against the obligations of a negotiable instrument. When a party signs a negotiable instrument, they are bound by its terms, regardless of their awareness or understanding of its nature as a negotiable instrument.

A Party Who Signs a Negotiable Instrument Without Knowing That