The negotiation of an instrument made in breach of duty is subject to ________ before the instrument has been negotiated to a transferee who can qualify as a holder in due course.
A)rescission
B)remission
C)restitution
D)reformation

Question

Quizplus · Accepted Answer

A negotiation made in breach of duty is subject to rescission before the instrument has been negotiated to a transferee who can qualify as a holder in due course or a person paying the instrument in good faith and without knowledge of the factual basis for rescission or other remedy.

The Negotiation of an Instrument Made in Breach of Duty