Fact Pattern 16-1

question 2

Multiple Choice

Fact Pattern 16-1
Ewa signs an instrument unconditionally promising to pay to “First State Bank” $5,000 with interest in installments with the final payment due June 1, 2012.

-Refer to Fact Pattern 16-1.With respect to this instrument,First States Bank is

• A)the drawee.
• B)the drawer.
• C)the maker.
• D)the payee.

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Definitions:

Unilateral

An action or agreement in which only one party makes a promise or fulfills a requirement, without requiring a reciprocal action.

Express Agreement

A contract or agreement in which the terms are explicitly stated and agreed upon by all parties involved.

Illegal

Activities or actions that are prohibited by law and subject to penalties.

Offer

A proposal by one party to enter into a legally binding agreement with another party.