Tanika Has a Checking Account at First Bank

question 44

Multiple Choice

Tanika has a checking account at First Bank.Orrin steals one of her blank checks,writes a check for $250 to himself,and then forges Tanika's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul presents the instrument to First Bank for payment.At First Bank's request,Paul indorses the instrument,and the bank then pays him $250.Which of the following is correct?

• A) Paul has no contractual liability on the instrument.
• B) Orrin has no contractual liability on the instrument.
• C) Tanika has no contractual liability on the instrument.
• D) Paul,Orrin and Tanika all have contractual liability on the instrument.

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