Asked by Kelin Martinez on Jul 20, 2024
Verified
A party who is/has ________ for an instrument must pay the amount on the instrument if the primarily liable party defaults?
A) transfer liability
B) primarily liable
C) maker liability
D) recognized liable
E) secondarily liable
Secondarily Liable
Responsibility or liability that kicks in when the primarily responsible party fails to fulfill their obligations.
- Distinguish between primary and secondary liability in the context of negotiable instruments.
Verified Answer
JD
Jeremy DavignonJul 26, 2024
Final Answer :
E
Explanation :
A party who is secondarily liable for an instrument, such as an endorser or a guarantor, must pay the amount on the instrument if the primarily liable party (such as the maker or acceptor) defaults.
Learning Objectives
- Distinguish between primary and secondary liability in the context of negotiable instruments.
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