N.Y. Uniform Commercial Code 3-408 – Consideration
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Section 3–408. Consideration.
Terms Used In N.Y. Uniform Commercial Code 3-408
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- promise: is a n undertaking to pay and must be more than an
acknowledgment of an obligation. See N.Y. Uniform Commercial Code 3-102 - Statute: A law passed by a legislature.
Want or failure of consideration is a defense as against any person not having the rights of a holder in due course (Section 3–305), except that no consideration is necessary for an instrument or obligation thereon given in payment of or as security for an antecedent obligation of any kind. Nothing in this section shall be taken to displace any statute outside this Act under which a promise is enforceable notwithstanding lack or failure of consideration. Partial failure of consideration is a defense pro tanto whether or not the failure is in an ascertained or liquidated amount.