Unlike primary liability, secondary liability is conditional, arising only if the primarily liable party fails to pay. To which of the following parties does this condition apply?

Question

Quizplus · Accepted Answer

The condition of secondary liability applies to indorsers, who are only liable if the primary obligor (such as the maker) fails to pay. Forgers are not liable parties, warehousers are not typically involved in liability for negotiable instruments, and acceptors are primarily liable (not secondary).

Unlike Primary Liability, Secondary Liability Is Conditional, Arising Only If