Asked by Regina Orzechowski on Apr 29, 2024
Verified
Which kind of endorsement places a condition on payment?
A) Conditional endorsement.
B) Trust endorsement.
C) Endorsement to prohibit further endorsement.
D) Bearer endorsement.
E) Conditional bearer endorsement.
Conditional Endorsement
An endorsement on a negotiable instrument that imposes conditions on the use or payment of the instrument.
Payment
The transfer of money or goods from one party to another as compensation or for goods and services received.
- Understand the difference between various types of endorsements and their effects on negotiation and liability.
Verified Answer
CH
Corey HillmanMay 05, 2024
Final Answer :
A
Explanation :
A conditional endorsement specifies a condition under which the endorser must meet before the payee can collect the payment, thus placing a condition on the payment.
Learning Objectives
- Understand the difference between various types of endorsements and their effects on negotiation and liability.
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