Parties That Are Usually Secondarily Liable for an Instrument Are

question 34

Multiple Choice

Parties that are usually secondarily liable for an instrument are:

• A) indorsers and drawers.
• B) makers and indorsers.
• C) makers and acceptors.
• D) acceptors and drawers.

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Definitions:

Principal

The main party to a transaction, such as a buyer or seller in a contract, or an individual who empowers another (agent) to act on their behalf.

Contract Authority

A power granted to an individual or entity to enter into legally binding agreements on behalf of another person or entity.

Principal Duties

are the main responsibilities or tasks that an individual or entity is expected to perform as part of a job role or contractual agreement.

Agent Duties

Responsibilities of an agent to act in the best interest of the principal, including duties of loyalty, care, and to disclose material information.