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Questions and Answers
Who is primarily liable on a promissory note?
Who is primarily liable on a promissory note?
- Drawer
- Maker (correct)
- Drawee
- Indorser
What renders the instrument negotiable?
What renders the instrument negotiable?
- Timely presentation of the instrument
- Maker's promise to pay (correct)
- Drawer's refusal to pay
- Declaration of dishonor by the indorser
Who is secondarily liable in signature liability?
Who is secondarily liable in signature liability?
- Maker
- Indorser (correct)
- Drawer
- Drawee
When is the drawer of a draft (check) liable?
When is the drawer of a draft (check) liable?
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What event triggers an indorser's liability?
What event triggers an indorser's liability?
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Who is liable for the full amount on a negotiable instrument if there are multiple indorsements?
Who is liable for the full amount on a negotiable instrument if there are multiple indorsements?
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When are parties secondarily liable on a negotiable instrument?
When are parties secondarily liable on a negotiable instrument?
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Which document does a drawer create?
Which document does a drawer create?
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'Secondary liability' refers to the obligation of which party?
'Secondary liability' refers to the obligation of which party?
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In what condition does an 'indorser' become liable?
In what condition does an 'indorser' become liable?
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