Tom indorsed a check made payable to the order of Tom Jones as follows: Pay Raymond Berry
/s/ Tom Jones
Raymond negotiated the check to his landlord for his rent. Raymond indorsed the check as follows:
Without Recourse
/s/ Raymond Berry
With regard to Tom's indorsement, which statement is correct?
A)Tom has secondary contractual liability on the check as an indorser.
B)Tom has no contractual liability on the check because he is the payee.
C)Tom has primary contractual liability on the check as payee.
D)Tom eliminated his liability as an indorser by the type of indorsement he used.

Question

Quizplus · Accepted Answer

Tom, by indorsing the check, assumes secondary contractual liability, meaning if the check is dishonored and proper notice is given, he can be held liable.

Tom Indorsed a Check Made Payable to the Order of Tom