Asked by Matthew Pereira on Jul 06, 2024

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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.
verifed

Verified Answer

AP
Amanda PettiferJul 12, 2024
Final Answer :
A
Explanation :
A conditional indorsement does not affect the right of an indorsee to enforce the instrument, as the condition relates to the contract between the indorser and the indorsee, not the enforceability of the instrument itself.