The Uniform Commercial Code assumes the instrument is for a valid and existing obligation as warranty in order to ensure the:

Question

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The negotiability of commercial paper is ensured by assuming the instrument is for a valid and existing obligation. This means it can be transferred from one party to another without affecting the underlying obligation, as long as certain requirements are met according to the Uniform Commercial Code. Endorsement, transparency, and clarity are also important aspects of commercial paper, but they are not directly related to the assumption of a valid and existing obligation.

The Uniform Commercial Code Assumes the Instrument Is for a Valid