A drawee is primarily liable on a draft when ________.
A) the instrument is issued
B) the instrument is dishonored
C) the instrument is presented for payment
D) the drawee is an acceptor to the instrument

Question

Quizplus · Accepted Answer

A drawee is primarily liable on a draft when they are also an acceptor to the instrument, indicating their willingness to pay the amount stated on the draft. In this situation, the drawee becomes primarily liable for payment, rather than simply being obligated to pay as secondary liability.

A Drawee Is Primarily Liable on a Draft When ________