Asked by Gargi Patil on May 22, 2024

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Parties that are usually secondarily liable for an instrument are:

A) indorsers and drawers.
B) makers and indorsers.
C) makers and acceptors.
D) acceptors and drawers.

Secondarily Liable

Liability that is not primary but comes into effect when the party with primary liability has failed to fulfill an obligation.

Indorsers

Individuals who endorse or sign their name on the back of a document or cheque, thus transferring responsibility or ownership to another party.

Drawers

In banking and finance, individuals or entities that write and issue a check or draft instructing a bank to pay a specific amount from the drawer's account.

  • Understand the principles of primary and secondary liability as they apply to negotiable instruments.
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HB
Hunter BarnettMay 29, 2024
Final Answer :
A
Explanation :
Indorsers and drawers are typically secondarily liable on an instrument. This means they are liable if the primary party (maker or acceptor) defaults and certain conditions are met, such as proper presentment, dishonor, and notice of dishonor.