Question

Marissa gives Larry a check made payable to cash in payment for a computer that she is buying from him. Larry then gives the check to his nephew, Gary Graduate, without indorsing it, as a graduation gift. Marissa then stops payment on the check because she claims that Larry breached the contract. When the check bounces, Gary makes a claim against Marissa for the amount of the check. Marissa responds that Gary cannot collect on the check since he is not a holder because Larry never indorsed the check to him. Which statement is true

Answer 1

Answer:

1. Gary is at least a holder

Explanation:

According to the given situation, the first option is correct as the check has been provided as cash also there is no name written over the check so the larry can provide it to anyone else for enchasing the check

Therefore as per the given situation Gary should be the holder of the check so that he can provide to anyone else for encashing it