A forged or unauthorized indorsement is by definition:
A) an indorsement of the person by whom it appears to have been made.
B) no indorsement of the person by whom it appears to have been made.
C) binding on the party who refuses to ratify the instrument.
D) incapable of being ratified.

Question

Quizplus · Accepted Answer

A forged or unauthorized indorsement means that the person whose name appears on the endorsement did not actually sign or authorize the payment. Therefore, there is no valid indorsement of the person by whom it appears to have been made (choice B). It is not binding on the party who refuses to ratify the instrument, and it cannot be ratified (choices C and D).

A Forged or Unauthorized Indorsement Is by Definition