Asked by Isaac Rojas on May 20, 2024
Verified
A party who is primarily liable for an instrument must pay without resorting to any other party.
Primarily Liable
Refers to the party in a financial transaction or contractual agreement who has the direct responsibility to perform or pay.
Instrument
A formal legal document that records a right, duty, or the execution of a transaction, such as contracts, deeds, and promissory notes.
- Absorb the different responsibilities and legal implications linked with negotiable instruments, such as the positions of maker, drawer, acceptor, and endorser.
Verified Answer
MA
Muhamad AzamuddinMay 21, 2024
Final Answer :
True
Explanation :
A party who is primarily liable on an instrument, such as the maker of a promissory note or the acceptor of a bill of exchange, is obligated to pay the instrument when it comes due without demanding payment from anyone else first.
Learning Objectives
- Absorb the different responsibilities and legal implications linked with negotiable instruments, such as the positions of maker, drawer, acceptor, and endorser.