Asked by juan manuel iglesias on Jun 14, 2024
Verified
What is the difference between the liability of a qualified indorser and an unqualified indorser? Does the fact that a person has given a qualified indorsement mean that the person has no liability? Explain.
Qualified Indorser
An individual or entity that endorses a negotiable instrument, adding conditions or limitations to the endorsement.
Unqualified Indorser
A term likely meant to refer to an unqualified endorsement, where an endorser does not limit their liability on a negotiable instrument.
Liability
The state of being legally responsible for something, especially in terms of debts or legal obligations.
- Differentiate between the liability of qualified and unqualified indorsers in negotiable instruments.
Verified Answer
PD
Pamyrjtha DesronvilJun 17, 2024
Final Answer :
A qualified indorser's contractual liability is limited in the event that the primary party defaults on the payment. An unqualified indorser's liability is not limited in the case of a default on payment by the primary party. Even though a qualified indorser limits contractual liability, she still has liability for breach of a warranty.
Learning Objectives
- Differentiate between the liability of qualified and unqualified indorsers in negotiable instruments.