Hedy draws a check "payable to the order of Ilsa or Jeto" and gives the check to Ilsa. Hedy's obligation on the check to Jeto is
A)suspended.
B)to render half of the amount of the check to each party.
C)discharged.
D)to hold the full amount of the check for the benefit of both payees.

Question

Quizplus · Accepted Answer

Hedy's obligation to Jeto is suspended because the check is payable to the order of either Ilsa or Jeto, and since Ilsa has received the check, Jeto's right to claim the amount is on hold until further action is taken by Ilsa.

Hedy Draws a Check "Payable to the Order of Ilsa