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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- Not a CA , can we prepare balance sheet
- TCS ON SOFTWARE SALES
- SHARE TRANSFER PRIVATE LIMITED COMPANY
- Car Purchases in Daughter Name
- Invoicing in different currency
- ITR 6 Schedule CFL and UD Issues
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
