Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delmar Bank to pay for his current semester's textbooks.The bookstore deposits the check in its account in Evergreen Bank.Like most checks,this check is
A)a one-party instrument.
B)a four-party instrument.
C)a three-party instrument.
D)a two-party instrument.

Question

Quizplus · Accepted Answer

This check is a three-party instrument since there are three parties involved:
1. Brendan, who is the drawer and the first party
2. City College Bookstore, who is the payee and the second party
3. Evergreen Bank, where the check is deposited, who is the drawee and the third party.

Brendan Signs a Check "Pay to the Order of City