Lexy obtains a check payable to her order from Maven.To negotiate this order instrument to Nicole requires
A)Lexy's indorsement and delivery.
B)Maven's indorsement and delivery.
C)Nicole's indorsement and delivery.
D)delivery without anyone's indorsement.

Question

Quizplus · Accepted Answer

To negotiate a check, the person who is the payee (in this case, Lexy) must endorse (sign) the back of the check and deliver it to the person they want to receive the money (in this case, Nicole). This is known as a "blank endorsement" because Lexy is not specifying who the check should be paid to, which allows Nicole to then endorse it and deposit or cash it herself. Option B is not applicable because Maven, the person who issued the check, has already fulfilled their obligation by creating a check in favor of Lexy. Option C is not applicable because Nicole is not the original payee and therefore cannot simply endorse the check to herself. Option D is not applicable because an endorsement is required for negotiation.

Lexy Obtains a Check Payable to Her Order from Maven