Unless otherwise agreed,indorsers are liable to each other in the order in which they indorsed the instrument.

Question

Quizplus · Accepted Answer

This statement is true as per the provisions of the Uniform Commercial Code (UCC), which governs negotiable instruments like checks and promissory notes. According to UCC § 3-415, each indorser is liable to subsequent indorsers and the holder in the order of indorsement. This means that if the instrument is dishonored, each indorser can be held responsible for paying the amount owed based on the order they endorsed it.

Unless Otherwise Agreed,indorsers Are Liable to Each Other in the Order