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What contract is made when people indorse negotiable instruments? What is the legal effect of a...

What contract is made when people indorse negotiable instruments?

What is the legal effect of a forged indorsement?

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a) In case of indorsement, ownership of the negotiable instrument is transferred to the payee. The indorser also enters into a contract with the holder to pay the face amount of the negotiable instrument in case of the instrument being dishonoured. b) Presenting a forged instrument is a criminal offense and is counted as intentional fraud. This can result in civil and criminal case court proceedings, and even jail along with fine/penalty

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