Asked by Daisy Terrado on May 20, 2024
Verified
Marty Sandidge wrote a check payable to "Charles Saxon" when the payee's real name was spelled "Charles Saxton." In order to obtain payment, Charles:
A) must have Marty void the check and rewrite another check with Charles's name spelled correctly.
B) may be required by a person taking the instrument for value to sign both "Charles Saxon" and the correct spelling of his name.
C) must sign only his real name with the correct spelling or he will be liable for forgery.
D) must sign only "Charles Saxon" since that was the name on check.
Forgery
The act of falsely making or altering a document with the intent to deceive or defraud.
Negotiable Instrument
A document guaranteeing the payment of a specific amount either on demand or at a set time, with the instrument being transferable between parties.
- Master the concepts and implications of indorsements, with a focus on special, blank, and restrictive forms.
- Comprehend the repercussions of unapproved signatures and forgeries on the negotiability and legal standing of negotiable documents.
Verified Answer
LS
Lekshmi SudhaMay 23, 2024
Final Answer :
B
Explanation :
Charles may be required by a person taking the instrument for value to sign both "Charles Saxon" and the correct spelling of his name to endorse the check. This is because the name on the check does not match his actual name, and signing both names can serve as a way to verify his identity as the intended payee.
Learning Objectives
- Master the concepts and implications of indorsements, with a focus on special, blank, and restrictive forms.
- Comprehend the repercussions of unapproved signatures and forgeries on the negotiability and legal standing of negotiable documents.