A check drawn by Cullen for $500 is made payable to the order of Jordan and issu

Question

A check drawn by Cullen for $500 is made payable to the order of Jordan and issued to Jordan.Jordan owes his landlord $500 in rent and transfers the check to his landlord with the following indorsement: " For rent paid, [signed] Jordan." Jordan's landlord has contracted to have Deborah do some landscaping on the property. When Deborah insists on immediate payment, the landlord transfers the check to Deborah without indorsement. Later, to pay for some palm trees purchased from Better-Garden Nursary, Deborah transfers the check with the following indorsement: " Pay to Better-Garden Nursery, wothout recourse, [signed] Deborah." Betterr-Garden Nursery sends the check to its bank indorsed " For deposit only, [signed] Better-Garden Nursery." a) Classify each of these indorsement. b) Was the transfer from Jordan's landlord to Deborah, without indorsement, an assgnment or a negotiation? Explain please

Explanation / Answer

Answer to Part A

For rent paid signed by Jordan is a blank indorsement.

Pay to Better-Garden Nursery, without recourse signed by Deborah is a special qualified indorsement.

For deposit only signed by Better-Garden Nursery is a restrictive indorsement.

Answer to Part B

The transfer was negotiation because in this Deborah became a holder and it was a bearer instrument. As per norms, bearer instrument can be negotiated by delivery only without indorsing the same and in the given case jordan's landlord negotiated the cheque to DEborah.

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