Asked by Diamondz R-blissful on May 02, 2024
Verified
Under Revised Article 3 of the UCC, failure to give notice of dishonor will discharge the drawer from having to pay on the instrument.
Notice Of Dishonor
A formal notification indicating that a negotiable instrument, like a check, has been dishonored or refused for payment.
Revised Article 3
Part of the Uniform Commercial Code that governs negotiable instruments, such as checks and promissory notes, incorporating updates to reflect modern practices.
UCC
The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the law across state lines.
- Identify the implications of presentment, notice of dishonor, and delay due to circumstances.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
False
Explanation :
Under Revised Article 3 of the UCC, failure to give notice of dishonor does not discharge the drawer or an indorser from liability on the instrument. Notice of dishonor is relevant for accelerating payment or informing parties of the dishonor, but lack of notice does not automatically relieve the drawer of their obligation to pay.
Learning Objectives
- Identify the implications of presentment, notice of dishonor, and delay due to circumstances.