Tom indorsed a check made payable to the order of Tom Jones as follows:
Pay Raymond Berry
/s/ Tom Jones
Raymond negotiated the check to his landlord for his rent.Raymond indorsed the check as follows:
Without Recourse
/s/ Raymond Berry

Question

Quizplus · Accepted Answer

By indorsing the check, Tom became an indorser and therefore has secondary contractual liability on the check. This means that if the check is not paid by the bank, the payee (Raymond) can go back to Tom and demand payment. Tom's liability as an indorser could only be eliminated by using a qualified indorsement, which would limit his liability, or by transferring the check by negotiation and delivering it to a third party.

Tom Indorsed a Check Made Payable to the Order of Tom