Question

The words "without recourse" on an indorsement means the indorser is

A. liable personally, but not other parties.
B. only liable for up to fifty percent of the loss.
C. not liable for any problems associated with the instrument. D. not liable if the instrument is dishonored.

Answer 1

Answer: D. not liable if the instrument is dishonored.

Step-by-step explanation:

The words "without recourse" on an indorsement means the indorser is not liable if the instrument is dishonored.

For example of a check is given to an individual without recourse, it simply means that in a case whereby the check is rejected, and not paid, the endorser will not be held responsible.