A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment. Should the drawer pay Sally

c. Yes, since the word "or" is contained in the instrument, either Joe Jones or the bearer of the draft may obtain payment.

Explanation:

These are options for the question below

a. No, unless Joe Jones's name is crossed off.

b. No, unless "bearer" is handwritten.

c. Yes, since the word "or" is contained in the instrument, either Joe Jones or the bearer of the draft may obtain payment.

d. No, the terminology is ambiguous and therefore the draft must be paid only to the order of Joe Jones.

From the question, we were told that A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment. Should the drawer pay Sally

The right answer is Yes, this is because the word "or" is found in the instrument, and any one between Joe Jones and the bearer of the draft is liable in obtaining payments,

Note: a draft is an order for money to be paid, it in a written form.

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