Salmond signs a note for the purpose of lending credit to John.Salmond also makes his father Richard sign the note because of his shaky financial condition.This indicates that Richard has signed the note in the capacity of a(n):
A)drawer.
B)accommodation party.
C)drawee.
D)indorser.

Question

Quizplus · Accepted Answer

An accommodation party is a person who signs a negotiable instrument for the purpose of lending her credit to another party to the instrument but is not a direct beneficiary of the value given for the instrument.

Salmond Signs a Note for the Purpose of Lending Credit