Legal principle preventing an entity from putting forth a defense based on a mistake caused by that entity’s negligence. For example, if a negligent entity causes a negotiable instrument’s misuse, as in delivering it to a wrong person or leaving blank spaces in it, then that entity is estopped (refer to estoppel) from using the misuse against any subsequent holder who in good faith accepted or transferred the instrument.
What is NEGLIGENCE RULE?
Featuring Black’s Law Dictionary
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