Tennessee § 47-3-202 - Negotiation subject to rescission.
Full text of Tennessee Tennessee Code Annotated § 47-3-202 — Negotiation subject to rescission., with citation guidance and answers to common questions.
§ 47-3-202. Negotiation subject to rescission.
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. To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good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. Acts 1995, ch. 397, § 2. Prior Tennessee Law: §§ 47-122, 47-158, 47-159. Textbooks. Tennessee Jurisprudence, 6 Tenn. Juris., Commercial Law, § 56. Cited: Lawyers Title Ins. Corp. v. United American Bank, 21 F. Supp. 2d 785, 1998 U.S. Dist. LEXIS 14612 (W.D. Tenn. 1998); Ingram v. Earthman, 993 S.W.2d 611, 1998 Tenn. App. LEXIS 704 (Tenn. Ct. App. 1998).
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 47-3-202
What does Tennessee Code Annotated § 47-3-202 cover?
Section 47-3-202 ("Negotiation subject to rescission.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 47-3-202?
A common citation format is "Tennessee Code Annotated § 47-3-202" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 47-3-202 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.