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

(a)Classify each of these endorsements.

Cullen made a special endorsement because the check was made payable to Jordan. Jordan made a blank endorsement because he did not specify its recipient. Deborah has become a holder because the check was never endorsed it was merely transferred. Deborah then makes a qualified endorsement to Better-Garden Nursery. Better-Garden Nursery in the end makes an endorsement for deposit.

A special endorsement is made by Cullen as the check payment was made to Jordan. There was a blank endorsement from Jordan as the name of the recipient was not mentioned. Deborah will be considered as a holder because the check was never endorsed it was merely transferred. In fact a qualified endorsement was made by Deborah to Better-Garden Nursery.. The endorsement at the end was made by Better-Garden Nursery for deposits.

(b)Was the transfer from Jordan’s landlord to Deborah, without endorsement, an assignment or a negotiation? Explain.

This kind of transfer will be considered as a negotiation as Deborah received the instrument and Jordan’s landlord never made any kind of endorsement or promise to pay

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