When the name of the payee is spelled incorrectly, the payee:
A) must indorse the instrument with the incorrect spelling of the payee's name.
B) must indorse the instrument with the correct spelling of the payee's name.
C) may indorse the instrument with either the correct or incorrect spelling of the payee's name.
D) may not indorse the instrument.

Question

Quizplus · Accepted Answer

The payee may endorse the instrument with either the correct or incorrect spelling of their name. This flexibility ensures that minor errors in spelling do not impede the negotiability of the instrument.

When the Name of the Payee Is Spelled Incorrectly, the Payee