The words "without recourse" on an indorsement means the indorser is:
A) liable personally but not other parties.
B) not liable for any problems associated with the instrument.
C) not liable if the instrument is dishonored.
D) liable for only up to fifty per cent of the loss.

Question

Quizplus · Accepted Answer

When an indorsement includes the words "without recourse," it indicates that the indorser is not assuming liability if the instrument is dishonored, effectively removing their personal liability in the event that the instrument cannot be paid.

The Words "Without Recourse" on an Indorsement Means the Indorser