Asked by hector batalla on May 20, 2024
Verified
How can an indorser avoid secondary liability on the instrument? Can an indorser disclaim transfer warranty liability?
Indorser
The person who signs and transfers a negotiable instrument, such as a check or promissory note, to another party.
Secondary Liability
The legal obligation to pay a debt if the primary obligor defaults, usually applied in cosigning contexts.
- Identify the legal duties and liabilities associated with authorized agents, accommodation parties, and endorsers concerning negotiable instruments.
Verified Answer
SJ
Stephanie JollyMay 21, 2024
Final Answer :
An indorser can avoid liability on the instrument by using a qualified (without recourse)indorsement.Except in the case of a check,the transferor of an instrument may disclaim transfer warranty liability on it.Presumably,a qualified indorsement would do the job.
Learning Objectives
- Identify the legal duties and liabilities associated with authorized agents, accommodation parties, and endorsers concerning negotiable instruments.
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