Asked by Amaya Jones on Jun 30, 2024
Verified
Liability for payment on a negotiable instrument extends only to those who sign the instrument.
Liability
Liability is the legal responsibility to settle debts or legal claims. This encompasses both financial obligations and the duty to compensate for harm or damage caused.
Negotiable Instrument
A document in writing that promises to pay a designated sum of money, either when asked or at a predetermined time, with the document specifying who must make the payment.
Signs
Objects, gestures, or marks used to convey information, instructions, or identifications.
- Identify the extent of liability for payment on a negotiable instrument.
Verified Answer
SC
Shannon ConradJul 07, 2024
Final Answer :
False
Explanation :
Liability on a negotiable instrument can extend to parties who do not sign the instrument, such as endorsers or those who guarantee payment, in addition to the signatories.
Learning Objectives
- Identify the extent of liability for payment on a negotiable instrument.