Commercial Law, 2012 Bar — Question 16

MULTIPLE CHOICE

X delivered a check issued by him and payable to the order of CASH to Y in payment for certain obligations incurred by X in favor of Y. Y then delivered the check to Z in payment for certain obligations. Which statement is most accurate? A) Z can encash the check even though Y did not indorse the check. B) Z cannot encash the check for lacking in proper endorsement. C) Y is the only one liable because he was the one who delivered the check to Z. D) The negotiation is not valid because the check is an instrument payable to order.

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