Ellen stops by a garage sale and falls in love with a painting but does not have any cash on her. Ellen only has a check written out to her by Rob. Unknown to Ellen, Rob's signature was forged on the check. In good faith, Ellen endorses the check and gives it to the person at the garage sale in exchange for the painting. When the person who had the garage sale attempts to cash the check, the bank refused to cash it, stating that it is a forged check. In the above situation who would be liable for the value of the check?

Question

Quizplus · Accepted Answer

Ellen is liable for the value of the check because she endorsed the check and gave it to the person at the garage sale in exchange for the painting. Rob is not liable because his signature was forged on the check.

Ellen Stops by a Garage Sale and Falls in Love