Asked by Ann Mary Martin on May 06, 2024
Verified
The statement, "Pay to Constance only," with the endorser's signature is an example of which of the following types of endorsements?
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 limits its payment to certain conditions being met.
Endorsement
An amendment or addition to an existing document or contract, or the act of publically or officially supporting a product or idea.
- Acquire knowledge about how endorsements affect the negotiability and transferability of financial instruments.
Verified Answer
SH
Saliyah HarrisMay 06, 2024
Final Answer :
C
Explanation :
This statement is an example of an endorsement to prohibit further endorsement. By specifying "Pay to Constance only," the endorser is limiting the ability to further negotiate or transfer the instrument to anyone other than Constance.
Learning Objectives
- Acquire knowledge about how endorsements affect the negotiability and transferability of financial instruments.
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