Asked by Emilio Paderanga on Jun 16, 2024
Verified
Which of the following words are necessary for an endorsement to be considered qualified?
A) Addition of the words, "special endorsement."
B) Addition of the words, "restricted endorsement."
C) Addition of the words, "without recourse."
D) Addition of the words, "conditional entrustment."
E) Addition of the words, "trust endorsement."
Qualified Endorsement
A type of endorsement on a negotiable instrument, which limits the liability of the endorser.
Without Recourse
A term indicating that the seller of a financial instrument assumes no liability if the instrument fails to perform.
- Fathom the disparities between numerous endorsements and their consequences on negotiation and liability.
Verified Answer
EW
Esther WhangJun 20, 2024
Final Answer :
C
Explanation :
A qualified endorsement is one that limits the liability of the endorser. The phrase "without recourse" is used to indicate that the endorser does not assume responsibility if the instrument is dishonored.
Learning Objectives
- Fathom the disparities between numerous endorsements and their consequences on negotiation and liability.
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