Asked by Derek Lewis on Jul 15, 2024
Verified
Which of the following is not an acceptable manner to dishonor an instrument?
A) Orally
B) Newspaper publication
C) In writing
D) By e-mail
Dishonor
In the context of finance, refers to the refusal or inability of a party to pay a debt when it is due.
Instrument
A formal legal document, such as a contract, will, promissory note, or warrant, that establishes rights, privileges, or liabilities.
- Comprehend the notion of an instrument's dishonor and the legal repercussions that follow.
Verified Answer
CR
Carl Ryan TuckerJul 17, 2024
Final Answer :
B
Explanation :
The notice may be given in any reasonable manner-such as orally,in writing,or by e-mail-and must be given to any party other than a bank (which has a very limited time to provide the notice)within 30 days following the day of the dishonor.Newspaper publication is an unacceptable manner to dishonor an instrument because it may not put the other party on notice.
Learning Objectives
- Comprehend the notion of an instrument's dishonor and the legal repercussions that follow.