Asked by Songqing Jiang on Jun 07, 2024
Verified
What is the effect of the designation, "Hiro Murakami, without recourse?"
A) It has no effect on any subsequent holder.
B) It has no effect on anyone, including, but not limited to, any subsequent holder.
C) It means that Hiro Murakami does not provide any guarantees to subsequent holders if the instrument is later dishonored.
D) It means that Hiro Murakami is providing that any subsequent holder cannot be held liable.
E) It means that Hiro Murakami is providing that neither he nor the person who transferred the instrument to him can be held further liable to any subsequent holder.
Without Recourse
Refers to an agreement where the seller is not responsible for any issues that arise after the sale is completed, commonly used in bill of exchange and note transactions.
Endorse
To formally support, approve, or sign a document, often to authenticate its validity or to transfer rights or ownership.
Debt
A financial obligation owed by one party (the debtor) to another (the creditor), typically involving borrowed money that is expected to be paid back with interest.
- Understand the legal effects of alterations, misspellings, and unauthorized signatures on negotiable instruments.
- Identify and describe the types of endorsements and their legal implications.
Verified Answer
Learning Objectives
- Understand the legal effects of alterations, misspellings, and unauthorized signatures on negotiable instruments.
- Identify and describe the types of endorsements and their legal implications.
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