Question

A promissory note for P2M is indorsed as follows: Which of them is not proper indorsement?

A). Pay to A P1M and B P1M. Sgd. P
B). Pay to A and B P2M. Sgd. P
C). Pay to A or B P2M. Sgd. P
D). Pay to A P1M Sgd. P. The P1M for the residue of the note already paid

Answer 1

The correct answer is option D). Pay to A P1M Sgd. P. The P1M for the residue of the note already paid. In this option, the indorsement is not proper because it does not clearly indicate to whom the remaining amount of the promissory note should be paid.

Step-by-step explanation:

The correct answer is option D). Pay to A P1M Sgd. P. The P1M for the residue of the note already paid.

In this option, the indorsement is not proper because it does not clearly indicate to whom the remaining amount of the promissory note should be paid.

1. Option A clearly states that both A and B are to receive P1M each.
2. Option B also clearly states that both A and B are to receive the entire amount of P2M.
3. Option C offers the recipient the choice of either A or B receiving the entire amount of P2M.

Therefore, option D is not a proper indorsement as it does not clearly specify the recipient of the remaining amount of the note.