What Options Does a Payee Have Who Is Holding a Check

question 115

Multiple Choice

What options does a payee have who is holding a check payable to her?

• A) She must seek payment directly from the drawee bank.
• B) She must seek payment on the check, either directly from the drawee bank or by depositing the check in her account at her own bank.
• C) She may seek payment form the drawee bank, seek payment by depositing the check in her account at her own bank, or she may indorse the check to another person, so long as the indorsement has been approved by the drawer.
• D) She may seek payment from the drawee bank, seek payment by depositing the check in her account at her own bank, or she may indorse the check to another person, so long as the indorsement has been approved by the drawee.
• E) She may seek payment from the drawee bank, seek payment by depositing the check in her account at her own bank, or she may indorse the check to another person, and such indorsement does not need the approval of the drawer or drawee.

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Definitions:

Enforceable

Describes a legal agreement or contract that is valid and therefore can be upheld and enforced in a court of law.

Best Evidence Rule

A legal principle requiring the presentation of the original document as evidence in court, rather than copies, unless the original is unavailable.

Obligee

A person or entity that is owed a duty or performance under a legal agreement or contract.

Obligor

An obligor is a person or entity legally bound to provide a payment, service, or other benefit to another party (the obligee) under the terms of a contract or legal agreement.