True or false: bills and notes

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The promise or order to pay must be unconditional.

2. Statement is true

   No

   Statement

   A promissory note may be made payable to the bearer.

3. Statement is true

   Yes

   Statement

   The primary liability on a bill of exchange is that of the acceptor.

4. Statement is true

   No

   Statement

   Merely acknowledging a debt makes a valid promissory note.

5. Statement is true

   Yes

   Statement

   A bill can be passed on to another person by endorsement.

Instructions

Decide whether each statement about these instruments is true or false.

Explanation