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Question: Indorsements. A check drawn by David for $500 is made payable to the order of Matthew and issued to Matthew. Matthew owes his landlord $500 in rent and transfers the check to his landlord with the following indorsement: "For rent paid. [Signed] Matthew." Matthew's landlord has contracted to have Juarez do some landscaping on the property. When Juarez insists on immediate payment, the landlord transfers the check to Juarez without indorsement. Later, to pay for some palm trees purchased from Green's Nursery, Juarez transfers the check with the following indorsement: "Pay to Green's Nursery, without recourse. [Signed] Juarez." Green's Nursery sends the check to its bank indorsed "For deposit only. [Signed] Green's Nursery."
1 Classify each of these indorsements.
2 Was the transfer from Matthew's landlord to Juarez, without indorsement, an assignment or a negotiation? Explain.
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