Asked by Jasmine Agosto on May 20, 2024
Verified
Who is primarily liable on the promissory note and who is secondarily liable?
A) Both Dexter and Bernard are primarily liable on the note.
B) Dexter is primarily liable and Garren is secondarily liable.
C) Bernard is primarily liable and Garren is secondarily liable.
D) Dexter is primarily liable and Bernard is secondarily liable.
E) Bernard is primarily liable and Dexter is secondarily liable.
Primarily Liable
Being the first or main party responsible for fulfilling a debt or obligation.
Secondarily Liable
Pertains to a party that holds liability not as the primary party responsible but as a backup in case the primarily liable party fails to fulfill their obligations.
- Grasp the nuances of endorser liability and the order of liability among endorsers and makers of promissory notes.
Verified Answer
KF
keyri fuentesMay 24, 2024
Final Answer :
D
Explanation :
Dexter, as the maker of the promissory note, is primarily liable because he is the one who promised to pay the $500. Bernard, by endorsing the note and transferring it to Garren, becomes secondarily liable, meaning he is liable if Dexter fails to pay.
Learning Objectives
- Grasp the nuances of endorser liability and the order of liability among endorsers and makers of promissory notes.
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