Article 3 — Negotiable Instruments · Section 3-308

UCC § 3-308

Quick Answer

What does UCC § 3-308 cover?

This section provides the standards for proving the existence of a negotiable instrument and the details required to enforce it.

Source: U.C.C. § 3-308

Official Text
A person seeking to enforce a negotiable instrument must prove the existence of the instrument, the terms and conditions of the instrument, and that they are entitled to enforce the instrument.
Plain Language

UCC § 3-308 requires a party who wants to enforce a negotiable instrument, like a check or promissory note, to show that the instrument exists and outline its terms. This section ensures that only those with proper entitlement can demand payment.

Key Definitions

Negotiable Instrument

A signed document containing an unconditional promise or order to pay a specified amount of money.

Enforcement

The act of ensuring compliance with the terms of a negotiable instrument.

Practical Examples

Example 1

If a holder presents a check for payment, they must show the original check to prove its existence and terms.

Example 2

In a lawsuit regarding a promissory note, the plaintiff would need to present the note as evidence to enforce payment.

Common Exam Issues
  • Understanding the distinction between possession of the instrument and ownership.
  • The implications of missing signatures or alterations on an instrument's enforceability.
Related Sections
  • ucc-3-301
  • ucc-3-302
  • ucc-3-304

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