In the context of instruments that are merely promises to pay, which of the following has primary liability?
A) the person in physical possession of the instrument
B) the drawer of the instrument
C) the drawee of the instrument
D) the payee of the instrument

Question

Quizplus · Accepted Answer

The drawer of the instrument has primary liability because they are the one who created and signed the promise to pay. The other parties mentioned may have secondary liability depending on the circumstances. The person in physical possession may have liability if they fraudulently obtained the instrument, the drawee may have liability if they accepted the instrument and failed to pay, and the payee may have liability if they transferred the instrument to someone else without endorsement. However, these are all secondary forms of liability.

In the Context of Instruments That Are Merely Promises to Pay