417.418. Payment for services to be by check--taking other negotiable instrument, effect--contract limitation--execution of note or series of notes prohibited.
Payment for services to be by check--taking other negotiableinstrument, effect--contract limitation--execution of note orseries of notes prohibited.
417.418. 1. In payment for invention development services, theinvention developer shall not take from a customer a negotiable instrumentother than a check as evidence of the obligation of the customer.Notwithstanding any provision of chapter 400, RSMo, to the contrary, aholder of a negotiable instrument is not a holder in due course if he takesa negotiable instrument taken from a customer in violation of this section.
2. No contract for invention development services shall require theexecution of any note or draft or series of notes or drafts by the customerwhich, when separately negotiated, will cut off as to third parties anyright of action or defense which the customer may have against theinvention developer.
(L. 1995 S.B. 80 & 88)