Question

Helen Harrison creates an instrument contain the words "pay more sanchez" and her signature. this is a ? endorsement and creates ? paper.

Answer 1

In the current scenario, when Helen Harrison creates an instrument containing the words “pay jose sanchez” and her signature on it, Helen Harrison is creating an endorsement. A signature alone, other than that of the drawee, will be categorised as an endorsement only if placed on the back of the instrument; and with the motive of (1) negotiating the instrument, (2) restricting instrument's payment, or (3) incurring indorser's liability on the instrument