Fact Pattern 23-1 Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
Refer to Fact Pattern 23-1. Niklas is
A) not liable for payment under any circumstances.
B) primarily liable.
C) secondarily liable.
D) contractually liable.

Question

Quizplus · Accepted Answer

Niklas, as an indorser, is secondarily liable. This means he is liable for payment if the primary party (the bank) does not pay, provided certain conditions are met.

Fact Pattern 23-1 Lisa Writes a Check on Her Account