Negotiation Back  {Sec. 90}
Meaning
When an endorser, after he has negotiated an instrument, again becomes a holder before its maturity, the instrument is said to be negotiated back to that holder.
Effect:-
- In a negotiation back, none of the intermediate holder / endorsers is liable to the holder.
- The general rule, that a holder in due course may sue all prior parties to the instrument does not apply.
- However, where a prior party has excluded its liability on the instrument and the negotiable instrument is negotiated back to him, he may sue all intermediate endorsers.
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