Asked by Jordanna Porter on Jun 15, 2024
Verified
Ricardo is the holder of a check that contains the indorsement "Without Recourse, (signed) Mary Roberts." This indorsement:
A) makes further indorsement impossible.
B) requires a special indorsement by the transferee.
C) limits the liability of Mary Roberts.
D) limits the liability of all subsequent holders, including Ricardo.
Without Recourse
A term indicating that the holder of a financial instrument, such as a note or bill, cannot demand payment from the original issuer in case of default by the borrower.
Indorsement
The act of signing one's name on the back of a check or other negotiable instrument, legally transferring ownership or authorizing a transaction.
Liability
The legal responsibility or obligation to compensate someone else for harm or damage caused by one's actions or failure to act.
- Understand the distinctions between various types of indorsements and their legal implications.
- Understand the consequences of unauthorized endorsements and forgeries on the negotiability and enforceability of negotiable papers.
Verified Answer
Learning Objectives
- Understand the distinctions between various types of indorsements and their legal implications.
- Understand the consequences of unauthorized endorsements and forgeries on the negotiability and enforceability of negotiable papers.
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