What happens if the name of the indorsee or payee is misspelled in an indorsement?
A) The instrument becomes nonnegotiable.
B) The instrument can be indorsed with the misspelled name.
C) The instrument has to be remade to be valid.
D) The instrument cannot be subsequently indorsed.

Question

Quizplus · Accepted Answer

The instrument can be indorsed with the misspelled name. A misspelling of the payee's name on an endorsement does not render the instrument non-negotiable, as long as it still reasonably identifies the intended party. The payee can still negotiate the instrument by signing their name correctly next to the misspelled name.

What Happens If the Name of the Indorsee or Payee