The acceptor's obligation:
A) extends to a person entitled to enforce the draft.
B) does not extend to the drawer.
C) extends to an indorser who does not pay the instrument pursuant to the indorser's liability.
D) does not extend to the indorser who paid the instrument.

Question

Quizplus · Accepted Answer

The acceptor of a draft is obligated to pay the draft according to the terms at the time of its acceptance. Acceptance is the drawee's signed engagement to honor the draft as presented and is commonly indicated by the signature of the acceptor on the instrument itself. The acceptor's obligation extends to (1) a person entitled to enforce the draft, (2) the drawer, and (3) an indorser who paid the instrument pursuant to her indorser's liability.

The Acceptor's Obligation