Exam 40: Liability of Parties

Chang gives a promissory note to Rahim.Rahim indorses it and negotiates it to John,who indorses it and negotiates it to Andy.Which of the following statements is true of this scenario?

Notice of dishonor must be made only by written means.

Liability on negotiable instruments flows from:

Which of the following parties is primarily liable on a certified check?

Themba stole Umi's checkbook and wrote a check for $100 forging Umi's signature.Under these circumstances,_____.

People who present drafts for warranties:

Anupama drew a check on her account at Mortimer Bank payable to the order of Prahlad.When Prahlad presented the check for payment,Mortimer Bank refused to honor the check.Under these circumstances,the bank _____.

A party to a negotiable instrument is primarily liable if he or she has agreed to pay the negotiable instrument.

An instrument is not converted when a person pays an instrument to a person not entitled to payment.

List the five transfer warranties made by a person who transfers his or her negotiable instrument to someone else and for consideration.

The impostor rule regarding negotiable instruments:

The acceptor's obligation:

Mack is Bertha's agent and is authorized to sign checks for her.Mack signs one of Bertha's checks with his own name only.Which of the following parties is liable on the check?

Define the situations that lead to the dishonoring of a note by the maker.

The terms of the contract of the parties to a negotiable instrument must be set out in the text of the instrument.

Mention the parties who are entitled to enforce an instrument.

A person who transfers a negotiable instrument to someone else and for consideration makes a warranty that:

What are the most common ways an obligor on a negotiable instrument is discharged from his liability?

Igor signed a note to Gogh Bank,and his friend Sergei also signed the note as an accommodation maker.If Igor defaults on the note when it is due,what are Sergei's rights and obligations?

A person who is secondarily liable is like a(n):