Which of the following statements is TRUE with respect to notice of dishonour?
A) Notice of dishonour only needs to be provided against a party that did not endorse an instrument.
B) In some circumstances, an endorser may be held liable even if it did not actually receive notice of dishonour following the dishonour of a cheque.
C) Notice of dishonour is significant mainly because it relieves the drawee of a cheque of liability.
D) Once notice of dishonour is given to one endorser, it is automatically effective against all prior endorsers.
E) To be effective, notice of dishonour normally can be provided any time within six months of dishonour.
Correct Answer:
Verified
Q27: Ranjit currently has possession of a cheque
Q28: On June 1, Rituparna bought a widget
Q29: Claire gave a cheque for $5000 to
Q30: Which of the following types of endorsements
Q31: Which of the following statements is TRUE
Q33: On January 1, Jasmine bought a speedboat
Q34: Scott bought a widget from Gowhara.The price
Q35: Patrick bought a widget from Ishani.The purchase
Q36: Jacob bought a widget from Erin for
Q37: Natalia has a chequing account at the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents