Sarah Has a Checking Account at First Bank

Multiple Choice

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul presents the instrument to First Bank for payment.At First Bank's request, Paul indorses the instrument, and the bank then pays him $250.Which of the following is correct?

A) Paul has no contractual liability on the instrument.
B) Orrin has no contractual liability on the instrument.
C) Sarah has no contractual liability on the instrument.
D) All of these are correct.