Asked by Vasilis Lymberis on May 06, 2024
Verified
When a party signs a(n) ________, the party may be a drawer, maker, endorser, or acceptor
A) contract
B) non-negotiable instrument
C) negotiable instrument
D) endorsing document
E) application
Negotiable Instrument
A written document that promises or orders the payment of a fixed amount of money, with the capability of being transferred to another party.
- Ascertain the responsibilities and roles of those involved with negotiable instruments, namely the drawer, maker, endorser, and acceptor.
Verified Answer
CT
Callum ThomsMay 08, 2024
Final Answer :
C
Explanation :
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document. Examples include checks, promissory notes, and bills of exchange. When a party signs a negotiable instrument, they can take on various roles such as drawer (the party that obligates another party to pay), maker (the party promising to pay), endorser (the party who signs their rights over to another), or acceptor (the party who agrees to pay the bill of exchange).
Learning Objectives
- Ascertain the responsibilities and roles of those involved with negotiable instruments, namely the drawer, maker, endorser, and acceptor.