Asked by Matthew Pereira on Jul 06, 2024
Verified
A conditional indorsement on the back of an instrument
A) does not affect the right of an indorsee to enforce the instrument.
B) suspends further negotiation of the instrument until the condition occurs.
C) has the same effect as a conditional promise on the instrument's face.
D) prevents further negotiation of the instrument.
Conditional Indorsement
An endorsement on a negotiable instrument that specifies conditions under which the endorser can be held liable.
Indorsee
A person or entity to whom a negotiable instrument, such as a check or promissory note, is legally transferred.
Enforce
To compel observance of or obedience to a law, rule, or obligation through legal authority or force.
- Understand the criteria and impacts that certain conditions or traits have on the transferability of financial instruments.
Verified Answer
Learning Objectives
- Understand the criteria and impacts that certain conditions or traits have on the transferability of financial instruments.
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