Asked by Dillon Bannister on May 20, 2024
Verified
Any kind of notice of dishonor that informs the recipient of potential liability is sufficient.
Notice Of Dishonor
A formal notification indicating that a payment instrument, such as a check or bill of exchange, has been presented for payment and refused.
Potential Liability
A legal obligation that might occur in the future, depending on the outcome of a particular event.
- Master the understanding of warranties and the liabilities of transferors and presenters.
Verified Answer
WC
Wanqing ChongMay 23, 2024
Final Answer :
True
Explanation :
The notice of dishonor, which informs a party that a negotiable instrument has been dishonored, does not need to follow a specific format. As long as it communicates the dishonor and the potential liability to the recipient, it is considered sufficient.
Learning Objectives
- Master the understanding of warranties and the liabilities of transferors and presenters.
Related questions
Warranties on Presentment Are the Same Regardless of Who Is ...
Transferor's Warranties and Presenter's Warranties Are Implied Warranties Imposed Only ...
Bruce,who Works for Laura's Used Car Dealership,forges Laura's Name to ...
List and Generally Explain the Warranties on Presentment
A.What Warranties Are Given by an Indorser ...