Final answer:
The incorrect statement is D. The acceptor does not admit the existence of the indorser, the genuineness of his signature or his capacity and authority to indorse the instrument upon acceptance.
Step-by-step explanation:
The question is regarding the responsibilities and acknowledgements that arise when an acceptor agrees to an instrument, such as a check or a promissory note, in business transactions. Specifically, the question asks which statement is not correct about what the acceptor admits or engages in upon acceptance of the instrument:
- A. Admits the existence of the payee and his capacity to indorse
- B. Admits the existence of the drawer, the genuiness of his signature and his capacity and authority to draw the instrument
- C. Engages that he will pay it according to the tenor of his acceptance
- D. Admits the existence of the indorser, the genuiness of his signature and his capacity and authority to indorse the instrument
The correct answer is D. The acceptor, upon accepting a negotiable instrument, does not admit the existence of any indorsers, the genuineness of their signatures, or their capacity and authority to indorse. The acceptor only admits to the elements related to the payee, the drawer, and the commitment to pay the instrument.