Asked by Johnathan Wagner on Jul 07, 2024
Verified
As demonstrated in Pelican National Bank v.Provident Bank of Maryland,the case in the text,when checks are ambiguous,courts apply the default rule that:
A) treats the document as if it was payable in the alternative.
B) treats the document as if it was payable jointly.
C) pays the parties pro rata with their claims.
D) a virgule punctuation mark means "and" and not "or."
Ambiguous Checks
Checks that contain unclear, vague, or undetermined information, leading to potential confusion about the drawer's intentions.
Default Rule
A legal principle that applies in the absence of an agreement to the contrary between the parties involved in a contract or transaction.
- Evaluate the impact of specific provisions or conditions on the transferability of a document.
Verified Answer
NR
Natalie RittenhouseJul 13, 2024
Final Answer :
A
Explanation :
The court concluded that the check was ambiguous and applied the default rule that treated the document as if it was payable in the alternative.
Learning Objectives
- Evaluate the impact of specific provisions or conditions on the transferability of a document.