Week 5: Negotiation- Short Quiz 004An _______________ which purports to transfer to the ______ a part only of the amount payable ________ operate as a negotiation of the instrument.a. indorsement, indorsee, does notb. agreement, indorser, may notc. instrument, negotiator, mayd. act, maker, doesStatement 1. Conditional indorsement is an indorsement which is subject to a happening or a condition.Statement 2. An indorser is not liable unless there are presentment and notice of dishonor, while an assignor is liable even without notice of dishonor.a. Statement 1 is false: Statement 2 is falseb. Statement 1 is true; Statement 2 is truec. Statement 1 is false: Statement 2 is trued. Statement 1 is true: Statement 2 is falseStatement 1. Indorsementcannot be written at the front of the instrument.Statement 2. Qualified Indorsement specifies the person to whom or to whose order the instrument is to be payable. The indorsee is necessary for the further negotiation of the instrument if the instrument is an order instrument.