The drawer does not promise to pay the bill absolutely his liability to the

The drawer does not promise to pay the bill

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The drawer does not promise to pay the bill absolutely, his liability to the holder, or to any subsequent indorser, who may be compelled to pay it, is only secondary. His liabilities are conditional and he engages to pay the bill only after certain conditions are complied with. Y should be liable to A for P1,500 because it is the tenor of his acceptance. b.Y should be liable to A for P1,000 only because the collectible debt is only P1,000 c.Y should be liable to A for P1,500 because Y, as an acceptor, assented to the alteration. 4.What may be the liability of the drawee to the drawer before acceptance? As a rule, the drawee of a bill is not liable on the instrument before acceptance. He is not obligated to the payee or any holder to accept a bill although he may be liable to the drawer for breach of contract if he refuses without valid reason to accept the bill. 5.X draws on Y a bill for P1,000 payable 30 days after sight. If Y accepts the bill for P500 only, can the payee hold Y liable to the other P500 that he did not accept? Answer questions no. 6 and 7 based on the case in no. 5. 6.In no. 5 case, supposed W, the payee, altered the bill which was originally P1,000 to P1,500 and is accepted by Y for P1,500, how much is Y liable to A, a holder in due course for P1,000 or P1,500? a.Y should be liable to A for P1,500 because it is the tenor of his acceptance. b.Y should be liable to A for P1,000 only because the collectible debt is only P1,000 c.Y should be liable to A for P1,500 because Y, as an acceptor, assented to the alteration.
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  • Summer '14
  • Promissory note, Negotiable instrument, holder, Forgery, indorser

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