Can anybody give the reason for this statement for 2 marks
This query is : Resolved
06 August 2010
iv) A draws a cheque in favour of Y or order ‘sans recourse’.
06 August 2010
Under this type of endorsement, the holder relieves himself from any liability to all subsequent endorsees ...
If Party A (the "endorser") signs a bill of exchange containing a sans recourse endorsement with Party B (the "endorsee") over a financial instrument, Party B signs into an agreement with Party C over the same instrument, and the instrument is dishonored, the Party B cannot seek payment from Party A. A sans recourse endorsement is often made by those in a representative capacity rather than those acting as principal. Also called without recourse or at the endorsee's own risk.
If Party A (the "endorser") signs a bill of exchange containing a sans recourse endorsement with Party B (the "endorsee") over a financial instrument, Party B signs into an agreement with Party C over the same instrument, and the instrument is dishonored, the Party B cannot seek payment from Party A. A sans recourse endorsement is often made by those in a representative capacity rather than those acting as principal. Also called without recourse or at the endorsee's own risk.
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