Fact Pattern 27-2
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 27-2. Niklas is
A) not liable for payment under any circumstances.
B) primarily liable.
C) secondarily liable.
D) contractually liable.

Question

Fact Pattern 27-2
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 27-2. Niklas is​
A) ​not liable for payment under any circumstances.
B) ​primarily liable.
C) ​secondarily liable.
D) ​contractually liable.

Quizplus · Accepted Answer

Niklas is secondarily liable as the indorser of the check. He may be held liable only if the drawer (Lisa) and the primary party (Metro Bank) do not pay the check.

Fact Pattern 27-2 Lisa Writes a Check on Her Account at Metro Bank