__________ liability is conditional and arises only if the primarily liable party fails to pay on the negotiable instrument.

Question

Quizplus · Accepted Answer

Secondary liability is conditional and arises only if the primarily liable party, such as the maker of a note or the acceptor of a draft, fails to pay on the negotiable instrument. This type of liability applies to endorsers or guarantors who only become responsible for payment if the primary party defaults.

__________ Liability Is Conditional and Arises Only If the Primarily