Asked by Bui Cam Tu _ K14 FUG CT on Jul 04, 2024
Verified
A drawee places himself or herself into almost the same position as the maker of a note or the drawer of a draft when the drawee accepts the instrument.
Drawee
The party upon whom a cheque, draft, or other negotiable instrument is drawn and who is responsible for its payment.
Drawer
In financial contexts, the person who writes or issues a check or draft instructing a bank to pay a specified amount of money to a named party.
Maker
In financial terms, the party that promises to pay a certain amount of money in a promissory note or check.
- Evaluate the extent of financial obligation linked to a negotiable instrument.
- Gain insight into the effects of being designated as primarily or secondarily liable for a negotiable instrument.
Verified Answer
RP
Rushil PatelJul 05, 2024
Final Answer :
True
Explanation :
By accepting the instrument, the drawee agrees to be primarily responsible for its payment, similar to the maker of a note or the drawer of a draft who has guaranteed payment.
Learning Objectives
- Evaluate the extent of financial obligation linked to a negotiable instrument.
- Gain insight into the effects of being designated as primarily or secondarily liable for a negotiable instrument.