An obligation to pay a negotiable instrument subject to conditions precedent is known as:

Name: An obligation to pay a negotiable instrument subject to conditions precedent is known as:
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Question

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Secondary liability on a negotiable instrument, such as a check or promissory note, arises only after certain conditions are met, such as the failure of the party with primary liability to pay. Conditions precedent must occur before the secondary party is obligated to pay.

An Obligation to Pay a Negotiable Instrument Subject to Conditions