A Bank Has Given Value for a Negotiable Instrument to the Extent

question 69

True/False

A bank has given value for a negotiable instrument to the extent that the bank has a security interest in the instrument.

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Definitions:

Bilateral Contract

A type of agreement in which both parties involved promise to perform certain actions or obligations.

Consideration

A legal concept referring to something of value exchanged between parties in a contract, making the agreement binding and enforceable.

Unforeseen Circumstances

Events that could not have been predicted or expected and may impact contractual agreements or obligations.

Preexisting Duty Rule

A legal principle that asserts no additional consideration is necessary to modify a contract when a party is already legally obligated to perform a duty.