Asked by Jarrett Covelli on Jul 11, 2024

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A party who endorses a bill of exchange (e.g., a cheque) to enable another to negotiate it may not be held liable on the bill, even though no consideration was given as a result of the endorsement.

Endorse

To give one's public approval or support to someone or something, or to sign a document thus validating it.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.

  • Acquire insight into the role of consideration in contract formation and its legal implications.
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Verified Answer

AN
Aytekin NabisoyJul 12, 2024
Final Answer :
False
Explanation :
When a party endorses a bill of exchange, such as a cheque, they potentially become liable to subsequent holders if the primary party fails to pay, regardless of whether consideration was given for the endorsement.