Q: If a promise to pay was endorsed & accepted by the holder in due course,holder is obligated to give credit to endorser?
Promissory note is a negotiable instrument and the one to accept it is obligated to give credit to the one who endorsed such asset
A: Generally, if a promissory note is properly endorsed and accepted by the holder in due course, the holder is obligated to give credit to the endorser. As a negotiable instrument, the endorsement signifies the transfer of rights to the holder, who becomes the new creditor and is obligated to recognize the endorser's interest in the asset. However, specific contractual agreements or circumstances may affect the rights and obligations of the parties involved. It is advisable to consult with a legal professional specializing in contract law or negotiable instruments to understand the specific rights and obligations in your particular situation and jurisdiction.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
