Asked by beyonce logan on Apr 24, 2024
Verified
Which type of party must pay the stated amount of an instrument when it is initially presented for payment?
A) A party who is secondarily liable
B) A drawer or a party who is secondarily liable
C) An endorser
D) A drawer or an endorser
E) A party who is primarily liable
Primarily Liable
Refers to the party or entity that bears the main responsibility in fulfilling an obligation or debt, without dependence on the failure of another party.
- Knowing the parties' liability associated with negotiable instruments.
Verified Answer
RP
Regina Puma-atMay 02, 2024
Final Answer :
E
Explanation :
A party who is primarily liable for an instrument must pay the stated amount on the instrument when it is presented for payment.This liability for the stated amount begins as soon as the instrument is issued.Moreover,the primarily liable party must pay without resorting to any other party.
Learning Objectives
- Knowing the parties' liability associated with negotiable instruments.