Question

True or false

Answer 1

True. Every person who signs a negotiable instrument is liable for payment of that instrument when it comes due. Once a signature is put on the instrument it makes the person liable for payment on it. 

True. An acceptor is primarily liable on an instrument. An acceptor is a bank or someone who promises to pay an instrument it is presented for payment. 

True. Warranty liability on a negotiable instrument does not require a signature and extends to both signers and non signers. A warranty liability comes up when a person is trying to negotiate the instrument. 

False. The dishonor of an instrument relieves secondary parties of liability. If someone is in dishonor of an instrument they are held secondarily liable of the instrument. The notice of dishonor is a formal act letting the party know they are being held secondary liable.