Attorney Smith receives a check from the defendant to settle a case. The check is made payable
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Question:
Attorney Smith receives a check from the defendant to settle a case. The check is made payable to Smith. Smith endorses the check, adding the words "without recourse," and gives it to Clara Client. Clara deposits the check but it fails to clear. Which of the following statements is true?
A. Smith will have to pay the check amount to Clara.
B. Smith will have to pay the check amount to Clara but can sue the defendant for reimbursement.
C. Smith doesn't have to pay the amount of the check to Clara.
D. Clara has no remedy against Smith or the defendant because the check contained the words "without recourse."
Related Book For
Business Law Text and Cases
ISBN: 978-0324655223
11th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F
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