Asked by Jarrett Covelli on Jul 11, 2024
Verified
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.
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.
Learning Objectives
- Acquire insight into the role of consideration in contract formation and its legal implications.
Related questions
Pop Co Was a Small Producer and Bottler of Carbonated ...
Jeremy Agrees Not to Sue Angela for Having Crashed into ...
Susan Offered to Pay $500 for a Ring That Daria ...
To Enforce a Contractual Promise, There Must Be an Exchange ...
With Respect to Consideration, a Bargained-For Exchange Refers to the ...