Asked by Cortni Mckinney on Jun 29, 2024
Verified
A(n) ________ is a person who signs a negotiable instrument for the purpose of adding his or her name and liability to another party to the instrument.
A) fiduciary
B) indorser
C) accommodation party
D) drawee
Accommodation Party
A person who signs a negotiable instrument on behalf of another, typically to lend their credit without direct benefit.
Negotiable Instrument
A financial document that guarantees payment of a specified amount of money, either on-demand or at a set time, and is transferable from one person to another.
- Acquire knowledge about the legal responsibilities and liabilities of authorized agents, accommodation parties, and endorsers in the framework of negotiable instruments.
Verified Answer
KA
kenisha AllenJul 03, 2024
Final Answer :
C
Explanation :
An accommodation party is a person who signs a negotiable instrument for the purpose of lending her credit to another party to the instrument but is not a direct beneficiary of the value given for the instrument.
Learning Objectives
- Acquire knowledge about the legal responsibilities and liabilities of authorized agents, accommodation parties, and endorsers in the framework of negotiable instruments.
Related questions
How Can an Indorser Avoid Secondary Liability on the Instrument ...
Discuss Whether an Authorized Agent Can Be Held Personally Liable ...
Can Prida's Jewelry Be Held Liable for the Note ...
A(n) ________ Is a Party Who Has Authority to Act ...
An Agent's Signature Can Create Liability for a Principal as ...