If the Bill of Exchange is not honored on the due date, there is always a change the drawer will become liable on the bi

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Q 1589823717.     If the Bill of Exchange is not honored on the due date, there is always a change the drawer will become liable on the bill. This is called a Contingent Liability. What does it mean?


A

A liability that will only arise if a certain event occurs

B

A liability that will remain valid until the debtor pays his debt

C

Both (a) and (b)

D

Interest or principal of loan amount is defaulted for 3 to 12 months

E

None of the above

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Solution
(Provided By a Student and Checked/Corrected by EXXAMM.com Team)

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