Hamid has a check indorsed "Pay to the order of Hamid Ali." Hamid gives the check to Yasmin without indorsing it. Which of the following statements is true of this case?
A) Yasmin is not a holder of the check because she failed to indorse the check.
B) Yasmin is not a holder of the check because Hamid failed to indorse the check.
C) Yasmin is a holder of the check because only delivery was necessary to negotiate the check.
D) Yasmin is a holder of the check because she may supply the missing indorsement herself.

Question

Quizplus · Accepted Answer

If an instrument is payable to the order of a specific payee, it is called order paper and it can be negotiated by transfer of possession of the instrument after indorsement by the person specified. Here, Hamid can only negotiate the check by indorsing his name on the back of the check and giving it to the person to whom he wants to transfer it.

Hamid Has a Check Indorsed "Pay to the Order of Hamid