Asked by Kattelin Crocker on Jun 04, 2024
Verified
A person who is primarily liable on a negotiable instrument is absolutely required to pay the instrument regardless of whether he or she has an otherwise valid defense to payment.
Primarily Liable
Having the main or first responsibility for a debt or obligation.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name on it.
Valid Defense
A legitimate legal reason presented in a court to counteract or negate allegations made in a lawsuit.
- Learn about the impact of assuming primary or secondary liability concerning a negotiable instrument.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
False
Explanation :
A person who is primarily liable on a negotiable instrument, such as the maker of a promissory note, is indeed expected to pay the instrument when it comes due. However, they may have valid defenses against payment, such as fraud, duress, or illegality of the underlying transaction, which can be raised in certain situations to contest or avoid payment.
Learning Objectives
- Learn about the impact of assuming primary or secondary liability concerning a negotiable instrument.