Asked by Apiwe Xozwa on May 03, 2024
Verified
Morgan is the maker of a promissory note payable to Freeman on June 29. If Freeman fails to make proper presentment of the note to Morgan on June 29, Morgan's liability on the note is not affected.
Promissory Note
A promissory note is a financial instrument in which one party (the issuer) promises in writing to pay a determinable sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.
Proper Presentment
The formal process of presenting a document, such as a check or draft, to the appropriate party for payment or acceptance.
- Identify the circumstances that relieve a party from obligation in a negotiable instrument scenario.
Verified Answer
AK
Akshay KandwalMay 07, 2024
Final Answer :
True
Explanation :
Failure to make proper presentment of the note does not discharge Morgan's liability to pay the note; it may affect the timing or enforcement of the payment, but not the obligation itself.
Learning Objectives
- Identify the circumstances that relieve a party from obligation in a negotiable instrument scenario.