Multiple choice

Your customer issues a cheque for Rs. 10000 in discharge of his liability towords Mr. Shayam Prasad on order, who endorses the same in favour of Mr. Sita Ram in blank. This cheque

  1. cannot be endorsed further as the blank endorsement restricts further negotiation

  2. can be negotiated by Mr. Sita Ram without endorsement by him and by mere delivery

  3. can be negotiated further by Mr. Sita Ram with full endorsement by him followed by delivery

  4. can be endorsed by him in blank only

  5. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct Answer: can be negotiated by Mr. Sita Ram without endorsement by him and by mere delivery

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