Asked by Jaquez Hoskins on Jul 27, 2024
Verified
Regardless of circumstances,an acceptor of a draft is obligated to pay an instrument without reservations.
Acceptor
A drawee of a draft who has promised to honor the draft as presented by signing it on its face.
Draft
A written order by which the party creating it orders another party to pay money to a third party. Also called bill of exchange.
Instrument
A formal legal document that serves as evidence of a fact, act, or obligation, such as a deed, will, or contract.
- Understand the obligations and liability of parties involved in negotiable instruments.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
True
Explanation :
An acceptor of a draft has a legal obligation to pay the instrument according to the terms stated on it, without any reservations or conditions. This is because by signing as the acceptor, they are indicating their agreement to pay the amount owed.
Learning Objectives
- Understand the obligations and liability of parties involved in negotiable instruments.