Tex. Bus. & Com. Code § 3.202

NEGOTIATION SUBJECT TO RESCISSION

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 4 court decisions — leading case Geiselman v. Cramer Financial Group, Inc. (1997)

Most recently applied in First National Acceptance Co. v. Dixon (December 2004)

Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(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(b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.