[House Painting] Graciela Reyes signed a check agreeing to pay, "Annie Greene, Marney Harris," $1,000. The payment was for painting her house. A problem with the note was that it spelled Annie's last name, "Greene," whereas Annie spells it simply, "Green." Annie and Marney were having a disagreement regarding how to split up the funds for painting the house. Annie proceeded to sign the check on the back, "Annie Green," and presented it to Hiro Murakami to satisfy a debt that she owed him. Hiro Murakami endorsed the check on the back, "Hiro Murakami, without recourse," and gave it to his nephew, Nate, who took it to the bank for payment. Meanwhile, Graciela has stopped payment on the check because, following a rainstorm, all the paint on the house looked spotted. Marney is unhappy because she did not obtain any of the funds and stated that Annie could not legally endorse the instrument because it misspelled her name and also because she, Marney, did not sign it.
-Which of the following is true regarding Marney's claim that the endorsement by Annie was illegal because the note misspelled Annie's name?
A) Marney is correct.
B) Marney is correct, but only because Annie signed the note, "Green," instead of "Greene," as such was on the note.
C) Marney is correct, but only because two payees are listed.
D) Marney is incorrect.
E) Marney is incorrect unless she can prove that Graciela intentionally and purposefully spelled the name wrong to prevent negotiation.

Question

Quizplus · Accepted Answer

Marney's claim that the endorsement by Annie was illegal because the note misspelled Annie's name is incorrect. A minor misspelling of a name does not invalidate an endorsement or the negotiability of a check. Annie's endorsement of the check, even with the correct spelling of her name, is considered a valid endorsement.

[House Painting] Graciela Reyes Signed a Check Agreeing to Pay