Dishonor means:
A)fraud in the payment method.
B)deception in the amount of payment.
C)refusal to pay a negotiable instrument.
D)an extension of payment.

Question

Quizplus · Accepted Answer

Dishonor refers to the refusal to pay a negotiable instrument like a check or a promissory note. It could happen due to several reasons like insufficient funds, a stop payment order, or the instrument being expired or altered. Choices A and B refer to fraud and deception in payment, respectively, which could also lead to dishonor, but they are not the exact meaning of the term. Choice D is incorrect as an extension of payment does not lead to dishonor.

Dishonor Means