When Major endorsed customer Minor's note to Story County Bank,Major agreed to pay the note at maturity if Minor failed to pay.Major's liability is a(n):
A)contra-liability.
B)absolute liability.
C)contingent liability.
D)regular liability.

Question

Quizplus · Accepted Answer

Major's liability is contingent because it depends on the occurrence of a future event (Minor's failure to pay) and is not yet a certain liability.

When Major Endorsed Customer Minor's Note to Story County Bank,Major