Asked by Charles Myles on Apr 29, 2024
Verified
What are the conditions for a drawer or endorser to become liable?
Endorser
A person who signs their name on a document, often a check, to indicate their approval or to transfer ownership to another party.
Drawer
In a financial context, the person who writes or issues a check or draft instructing a bank to pay a specified sum of money to a designated party.
Liable
Legally responsible or obligated.
- Understand the conditions under which a drawer or endorser becomes liable.
Verified Answer
AM
Asemahle MajekeApr 30, 2024
Final Answer :
Three conditions must be met for a drawer or endorser to become liable.First,the holder of the instrument must present the instrument in a proper and timely fashion.Second,the instrument must be dishonored.Third,notice of the dishonor must be given to the drawer.
Learning Objectives
- Understand the conditions under which a drawer or endorser becomes liable.