Is the negotiation of an instrument ever valid even though the transaction in which it occurs is voidable or even void? Explain
Yes, the negotiation of an instrument is effective to transfer the instrument even if the negotiation is: (a) made by an infant, a corporation exceeding its powers, or any other person without capacity; or (b) obtained by fraud, duress, or mistake of any kind; or (c) part of an illegal transaction; or (d) made in breach of duty. The transferor loses all rights in the instrument until he regains possession of it. His right to do so is valid against the immediate transferee and all subsequent holders, but not against a subsequent holder in due course or a person paying the instrument in good faith and without notice.
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