Asked by Gopalakrishnan Manivel on May 28, 2024
Verified
A party who is ________ liable is responsible for paying the amount designated on an instrument if the primarily liable party defaults.
A) primarily
B) secondarily
C) customarily
D) statutorily
E) strictly
Primarily Liable
Liable for paying the amount designated on an instrument when it is presented for payment.
Defaults
A failure to fulfill an obligation, especially to repay a loan on time.
- Discriminate between the roles of primary and secondary liability in the context of negotiable instruments.
Verified Answer
DV
Dulmi VimangaMay 29, 2024
Final Answer :
B
Explanation :
A party who is secondarily liable for an instrument must pay the amount on the instrument if the primarily liable party defaults.
Learning Objectives
- Discriminate between the roles of primary and secondary liability in the context of negotiable instruments.
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