The Acceptor's Obligation

question 50

Multiple Choice

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.

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Definitions:

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to each other.

Listed Party

An individual or entity that appears on a list due to certain criteria, often used regarding sanctions, where listed parties are restricted from certain transactions and relationships.