A Person Who Makes a Completely Executory Promise,in Return for a Negotiable

question 23

True/False

A person who makes a completely executory promise,in return for a negotiable instrument,has given value for it.

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Definitions:

Collateral Contracts

Collateral contracts are supplementary agreements made in addition to a primary contract, which impose additional obligations or conditions related to the primary contract's terms.

Guarantor

An individual or entity that agrees to be responsible for another's debt or contractual obligations if the original party fails to meet their terms.

Principal Debtor

The main party obligated to repay a loan or debt.

Parol Evidence Rule

A legal principle that prevents parties from using oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.