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2018 Georgia Code 11-3-202 | Car Wreck Lawyer

TITLE 11 COMMERCIAL CODE

Section 3. Negotiable Instruments, 11-3-101 through 11-3-605.

ARTICLE 3 NEGOTIABLE INSTRUMENTS

11-3-202. Negotiation subject to rescission.

  1. Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity; (ii) by fraud, duress, or mistake; or (iii) in breach of duty or as part of an illegal transaction.
  2. To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.

(Code 1981, §11-3-202, enacted by Ga. L. 1996, p. 1306, § 3.)

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the provisions, decisions under former Code Section 11-3-207 are included in the annotations for this section.

Defendant may waive claim of duress.

- Where the plaintiff accepted compensation and performed services under a written contract, and never sought to rescind the contract or return the benefits obtained thereunder, the plaintiff waived any claim of duress. Walton v. James & Dean, Inc., 177 Ga. App. 77, 338 S.E.2d 516 (1985) (decided under former Code Section11-3-207).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, §§ 215, 216, 236. 12 Am. Jur. 2d, Bill and Notes, § 610.

C.J.S.

- 10 C.J.S., Bills and Notes, §§ 159, 161.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-202.

ALR.

- Invalidity of note as affecting liability of endorser to endorsee or subsequent holder, 16 A.L.R. 1377.

Effect of Negotiable Instruments Act on statute invalidating instrument given for gambling consideration, 37 A.L.R. 698; 46 A.L.R. 959.

Statement made to prospective transferree at time of execution of obligation, negativing defense or offset against obligation, as affecting right to set up defense of fraud, 60 A.L.R. 1180.

Construction and effect of provision of Negotiable Instrument Law as to endorsement or assignment of instrument by infant or corporation, 73 A.L.R. 172.

No results found for Georgia Code 11-3-202.