If an Accommodation Party Pays a Note for an Accommodated

question 20

True/False

If an accommodation party pays a note for an accommodated party, the accommodation party has a right of action against the accommodated party to recover the money paid.

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Definitions:

Legal Principle

A foundational concept or established rule of law that guides judicial decisions and legal reasoning.

Lower Courts

Courts that have jurisdiction to hear cases of less significance or that are the first level of the court system, also known as inferior courts.

Higher Courts

Judicial bodies at the upper levels of a legal system, which have the authority to hear appeals from lower court decisions.

Binding

A legal agreement or contract that is enforceable in a court of law.