Secondary Liability - Explained
What is Secondary Liability?
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What is Secondary Liability?
Secondary liability refers to a legal commitment where a party assumes responsibility for another party's action. In layman terms, secondary liability involves acting as a surety for an entity and taking claim of all their actions. This situation mostly occurs when one party contributes to, assists in, or is involved in an act which is illegally performed by the other party.
Secondary liability comes in two forms - vicarious liability and contributory liability. Vicarious liability is liability for the actions of others. Contributory liability is liability for participating in an activity for which another is deemed liable.
What is the role of a Guarantor or Surety of a negotiable instrument?
- Accommodation Paper Definition
- Secondary Liability
- Avalize Definition
Academics research on Accommodation Paper
- Commercial paper in economic theory and legal history, Weinberg, H. R. (1981). Commercial paper in economic theory and legal history. Ky. LJ, 70, 567.
- Validity of Corporate Mortgages Executed for Accommodation, Curran, E. O. (1938). Validity of Corporate Mortgages Executed for Accommodation. Mich. L. Rev., 37, 1001.
- Negotiable Instruments Law a Rejoinder to Dean Ames, Brewster, L. D. (1901). Negotiable Instruments Law a Rejoinder to Dean Ames. Harv. L. Rev., 15, 26.
- The discount policy of the Bank of England during the suspension of cash payments, 1797-1821, Duffy, I. P. (1982). The discount policy of the Bank of England during the suspension of cash payments, 1797-1821. Economic History Review, 67-82. The article re-interprets the directors' well-known public statements about discount policy in the light of fresh information derived from the Bank's archives. It challenges the usual view that the directors collectively espoused the real bills doctrine and argues that they appreciated the need to regulate discounts in order to limit the note circulation. It maintains that the relatively low level of discounts during the Restriction reflects the success of this policy and that the Bank's occasional excesses were products of maladministration, not of unenlightened beliefs.
- Antebellum Commercial Law: Common Law Approches to Secured Transactions, Freyer, T. (1981). Antebellum Commercial Law: Common Law Approaches to Secured Transactions. Ky. LJ, 70, 593