Svetlana Mills gives a check "payable to the order of Svetlana Mills," to a shopkeeper for some groceries.Here,the check would be considered as negotiated only upon the fulfillment of which of the following conditions?

Question

Quizplus · Accepted Answer

When an employer gives an employee,Susan Adams,a paycheck payable "to the order of Susan Adams," she is the holder of the check because she is in possession of an instrument payable to an identified person (Susan Adams)and she is that person.When she indorses (writes her name)on the back of the check and exchanges it for cash and merchandise at Ace Grocery,she has negotiated the check to the grocery store and the store is now the holder because it is in possession by transfer of a check and unless she specifies the grocery store by name,the check now is payable to bearer.

Svetlana Mills Gives a Check "Payable to the Order of Svetlana