Texas Statutes
§ 3.202 — NEGOTIATION SUBJECT TO RESCISSION.
Texas § 3.202
JurisdictionTexas
Code BCBusiness & Commerce Code
This text of Texas § 3.202 (NEGOTIATION SUBJECT TO RESCISSION.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
Tex. Business & Commerce Code Code Ann. § 3.202 (2026).
Text
Sec. 3.202. NEGOTIATION SUBJECT TO RESCISSION.
(a)Negotiation is effective even if obtained:
(1)from an infant, a corporation exceeding its powers, or a person without capacity;
(2)by fraud, duress, or mistake; or
(3)in breach of duty or as part of an illegal transaction.
(b)To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.
Free access — add to your briefcase to read the full text and ask questions with AI
Related
Geiselman v. Cramer Financial Group, Inc.
965 S.W.2d 532 (Court of Appeals of Texas, 1997)
Behring International, Inc. v. Greater Houston Bank
662 S.W.2d 642 (Court of Appeals of Texas, 1983)
Jernigan v. Bank One, Texas, NA
803 S.W.2d 774 (Court of Appeals of Texas, 1991)
Cartwright v. MBank Corpus Christi, N.A.
865 S.W.2d 546 (Court of Appeals of Texas, 1993)
Lawson v. Gibbs
591 S.W.2d 292 (Court of Appeals of Texas, 1979)
Southwestern Resolution Corp. v. Watson
964 S.W.2d 262 (Texas Supreme Court, 1998)
Federal Financial Co. v. Delgado
1 S.W.3d 181 (Court of Appeals of Texas, 1999)
Guaranty Federal Savings & Loan Ass'n v. Horseshoe Operating Co.
748 S.W.2d 519 (Court of Appeals of Texas, 1988)
Cadle Co. v. Estate of Weaver
897 S.W.2d 814 (Court of Appeals of Texas, 1994)
Texas State Investors, Inc. v. Kent Electric Co.
620 S.W.2d 841 (Court of Appeals of Texas, 1981)
Penny v. Kelley
528 S.W.2d 330 (Court of Appeals of Texas, 1975)
Owen v. Porter
796 S.W.2d 265 (Court of Appeals of Texas, 1990)
First National Acceptance Co. v. Dixon
154 S.W.3d 218 (Court of Appeals of Texas, 2004)
First National Acceptance Company v. Floyd Dixon
(Court of Appeals of Texas, 2004)
John T. Preston and C Change Investments, LLC v. Emjo Investments, Ltd. and H.J. Von Der Goltz
(Court of Appeals of Texas, 2015)
Legislative History
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.
Nearby Sections
15
§ 3.101
SHORT TITLE.§ 3.102
SUBJECT MATTER.§ 3.103
DEFINITIONS.§ 3.104
NEGOTIABLE INSTRUMENT.§ 3.105
ISSUE OF INSTRUMENT.§ 3.111
PLACE OF PAYMENT.§ 3.112
INTEREST.§ 3.113
DATE OF INSTRUMENT.§ 3.115
INCOMPLETE INSTRUMENT.Cite This Page — Counsel Stack
Bluebook (online)
Texas § 3.202, Counsel Stack Legal Research, https://law.counselstack.com/statute/tx/3.202.