An obligation to pay a negotiable instrument subject to conditions precedent is known as:
A) secondary liability.
B) acceptance.
C) primary liability.
D) dishonor.

Question

Quizplus · Accepted Answer

Secondary liability on a negotiable instrument, such as a promissory note or check, arises only under certain conditions, such as the failure of the party primarily liable to pay the instrument when it is due.

An Obligation to Pay a Negotiable Instrument Subject to Conditions