Daniela found Jessica's handbag in the street.There was an order cheque for $500 in the bag that was payable to Jessica.The cheque was not crossed (i.e.there were no parallel lines).Daniela forged Jessica signature and indorsed the cheque to Jim because she owed him money.Which statement best sums up Jim's legal rights,if any,in relation to the cheque?

Question

Quizplus · Accepted Answer

Jim does not have legal title to the cheque because a forged signature is not valid, regardless of whether the cheque is crossed or uncrossed. The fact that the cheque is an order cheque is irrelevant in this case. Additionally, to transfer an order cheque, both endorsement and delivery must take place. Daniela only endorsed the cheque to Jim, but did not physically deliver it to him. Therefore, Jim has no legal rights to the cheque.

Daniela Found Jessica's Handbag in the Street