Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation.
Ala. Code § 7-3-117
Other Agreements Affecting Instrument.
Known as the Uniform Commercial Code
The act spans §§ 7–7 (703 sections).
Applied in 1 court decision — leading case Blasco v. Money Services Center (In Re Blasco) (2006)
Most recently applied in Blasco v. Money Services Center (In Re Blasco) (October 2006)
(Acts 1995, No. 95-668, p. 1381, §1.)
Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.