arlisle writes a check payable to Michaela. Michaela indorses the check, "Pay to Barbara, providing that she completes the remainder of her book manuscript." Michaela has created: a. an indorsement for collection. b. a conditional indorsement. c. a deposit indorsement. d. an indorsement prohibiting further negotiation.

Question

Social Studies

Madden Johnston

18 December, 02:13

arlisle writes a check payable to Michaela. Michaela indorses the check, "Pay to Barbara, providing that she completes the remainder of her book manuscript." Michaela has created: a. an indorsement for collection. b. a conditional indorsement. c. a deposit indorsement. d. an indorsement prohibiting further negotiation.

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Mills · Answer 1

A conditional indorsement

Explanation:

A conditional indorsement is simply an indorsement entitling possession to the indorsee, however the title is retained till some condition stated in the indorsement occurs. In this case, Michaela made a conditional indorsement, which purely depends on a specific event occuring; in this case, the check can only be paid to Barbara if she completes the remainder of her book manuscript.