In which of the following conditions is a drawee primarily liable to a draft?
A) when the instrument is issued
B) when the instrument is dishonored
C) when the instrument is presented for payment
D) when the drawee is an acceptor to the instrument

Question

Quizplus · Accepted Answer

The drawee is primarily liable to a draft when they accept the instrument, indicated by the fact that they become an acceptor to the instrument. Therefore, option D is the correct answer. Options A, B, and C all refer to different stages of the life of the instrument, but do not indicate the primary liability of the drawee.

In Which of the Following Conditions Is a Drawee Primarily