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Ch 27 Liability & Discharge #2
Q 1) Distinguish between Primary Signature Liability an Secondary Signature Liability
2) Who is primarily liable on a note? On a draft?
3) What is the difference between a drawee and an acceptor?
Being unconditional is the nature of Primary Signature Liability (Clarkson, Miller & Cross, 2016). The instrument has to be paid absolutely in case of a Primary Signature Liability being applicable on an individual. This is because there will always be a negotiable instrument to which the individual will be primarily liable. However, there can be exceptional cases wherein the primarily liable individual might not be required to ensure that payment is made absolutely. This exceptional situation can be when there is a valid defense of the individual made by the individual to not make the payment (Clarkson, Miller & Cross, 2016).
