Multiple choice

If a bill of exchange is dishonoured,

(a) the drawer is liable to the holder (b) the drawer’s liability is secondary if it is accepted (c) the drawer’s liability is primary when it has not been accepted (d) the drawee is liable whether he accepts the bill or not in all circumstances

  1. (a), (b) and (c) only

  2. (a), (b) and (d) only

  3. (b), (c) and (d) only

  4. (a)<font size="2">, (b), (c) and</font> (d)

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It was held that until the bill has been accepted, the drawer is the principal debtor and after acceptance, the drawee or acceptor is the principal debtor and the drawer becomes secondarily liable.

Keep practicing — related questions