Liability in which a person cannot be held contractually liable on a negotiable instrument unless his or her signature appears on the instrument is referred to as ________.
A) warranty liability
B) unqualified liability
C) contract liability
D) accommodation

Question

Quizplus · Accepted Answer

Contract liability on a negotiable instrument is contingent upon the person's signature appearing on the instrument. This means that for someone to be held liable, they must have signed the instrument, indicating their agreement to the terms.

Liability in Which a Person Cannot Be Held Contractually Liable