Asked by Estefanie Estupinan on Jun 01, 2024
Verified
A demand instrument must be presented for acceptance or payment within a reasonable time after its date of issue and before a secondary party becomes liable on it.
Reasonable Time
A period of time that is legally accepted as sufficient or suitable under the circumstances.
Demand Instrument
A financial document that requires payment to the holder on demand or at a pre-defined time.
Secondary Party
An individual or entity indirectly involved in a legal agreement or crime, not the principal actor or participant.
- Understand the principles of when a demand instrument must be presented for acceptance or payment.
Verified Answer
JB
Jennifer BarringtonJun 07, 2024
Final Answer :
False
Explanation :
A demand instrument, by definition, does not require presentation for acceptance since it is payable on demand at any time.
Learning Objectives
- Understand the principles of when a demand instrument must be presented for acceptance or payment.