Obligations of the Parties
Learn about the obligations of the parties and an indorser of any negotiable instrument.
Transcript
To determine who is liable on a negotiable instrument and to whom, we must first understand the obligations one incurs by becoming a party to a negotiable instrument.
I. Obligations of a Maker
Imagine a law student borrowed money from a lender and executed a promissory note payable to the lender. If the lender later negotiated the note to a third-party financial institution, what was the law student’s liability on the note?
Subject to some nuance, the maker of a note must pay the note according...
