The customary manner of disclaiming the indorser's contractual liability is to add which of the following sets of words before or after his signature?
A) For collection only
B) Without recourse
C) Pay to the order of
D) For deposit only

Question

Quizplus · Accepted Answer

The customary manner of disclaiming the indorser's contractual liability is to add the words "without recourse" after his signature. This indicates that the indorser is not guaranteeing the payment or validity of the instrument, and any future holder of the instrument cannot hold the indorser liable if the instrument is not paid.

The Customary Manner of Disclaiming the Indorser's Contractual Liability Is