Which of the following is true of primary liability?
A)A maker of notes does not carry a primary liability.
B)A drawee is liable only by writing "accepted" and signing the draft.
C)A person with primary liability is liable to pay before the instrument is due.
D)An acceptor of drafts does not carry a primary liability.

Question

Which of the following is true of primary liability? ​
A)A maker of notes does not carry a primary liability.
B)A drawee is liable only by writing "accepted" and signing the draft.
C)A person with primary liability is liable to pay before the instrument is due.
D)An acceptor of drafts does not carry a primary liability.

Quizplus · Accepted Answer

A drawee becomes primarily liable on a draft once they write "accepted" on the document and sign it. This act of acceptance signifies their agreement to pay the draft when it comes due.

Which of the Following Is True of Primary Liability? ​

Which of the Following Is True of Primary Liability?