Asked by Michael Clayton on May 06, 2024
Verified
If a drawee refuses to pay the instrument,it is said to be:
A) delayed.
B) dishonored.
C) detained.
D) defaulted.
Dishonored
Refers to a failure in fulfilling an obligation, such as a check not being paid because of insufficient funds.
- Understand the judicial repercussions associated with rejected drafts and the significance of "without recourse" endorsements.
Verified Answer
GS
Gurjeet SinghMay 11, 2024
Final Answer :
B
Explanation :
When a drawee refuses to pay the instrument, it is considered to be dishonored.
Learning Objectives
- Understand the judicial repercussions associated with rejected drafts and the significance of "without recourse" endorsements.