C5. Liability

Question 1

Section & Liability of the maker

Answer 1

60. He engages himself to pay according to its tenor,

admits the existence of the payee and his capacity to indorse

Question 2

Section and Liability if the Drawer

Answer 2

61. Admits the existence of the payee and capacity to indorse,

Engage himself that upon presentment of the instrument, it will be accepted, paid, according to its tenor

Question 3

Section and liability of the Acceptor

Answer 3

62. By accepting the instrument, he Engages himself to pat it according to the TENOR OF HIS ACCEPTANCE, and

Admits: DRAWER’s existence and its SIGNATURE genuineness, his CAPACITY and AUTHORITY to DRAW

Primarily Liable

Question 4

Section & Liability of Irregular Indorser

Answer 4

64. If the instrument is payable to the order of the 3rd person, he is liable as an indorser to the:

PAYRE and ALL SUBSEQUENT PARTIES

Secondary Liability

Question 5

Section, Obligation, Liability and to whom - the PND and QI

Answer 5

Sec 65.

Obligation:

• Warrants that the instrument is geniune and in all respects what it purports to be,
• He has a good title to it
• All prior parties had the capacity to pay

Liability: Breach of Warranties

To Whom: Extends in favor of NO HOLDER other than the IMMEDIATE TRANSFEREE

Question 6

Section, warranties, Liability, and to whom - General Indorsers

Answer 6

66. Warrants
    A. Instrument is genuine and in all respect what it purports to be
    B. He has a good title to it
    C. Capacity to Contract of prior parties
    D. Knowledge that the Instrument is valid and subsisting at the time of indorsement

Secondarily Liable

To whom: to all Subsequent Holders in Due Course

Question 7

Section and Order where Endorsers are Liable:

Answer 7

68. As respect one another, endorsers are liable prima facie in the order to which they indorse, joint payees or joint indorsees who indorse are deemed

JOINTLY and SEVERALLY