Kara in Toronto has received a cheque from Pam in Vancouver, which Kara endorses with her signature and the words "Pay to John Black only," and mails it to John Black in Halifax. Black takes it to his bank to cash. The bank will refuse to do so.

Question

Quizplus · Accepted Answer

The bank will likely accept the cheque because Kara's endorsement "Pay to John Black only" is a special endorsement, which specifies the person to whom the bank should make payment, thus making John Black the rightful payee.

Kara in Toronto Has Received a Cheque from Pam in Vancouver