Module: General Practice
Q177: Mr. A endorses a cheque to Mr. B by adding the words "Sans Recourse" to his signature. The cheque is subsequently dishonoured. What is the legal liability of Mr. A in this scenario?
✅ Correct Answer: B
This is an application of Section 52, which allows an endorser to exclude their own liability by using the express words "Sans Recourse" (without recourse). By adding this phrase, Mr.
A is effectively stating: "I am transferring the property in this cheque to you, but if the drawer fails to pay, you cannot come back to me for recovery." Mr.
B takes the cheque with full knowledge of this limitation.
This type of endorsement is valid and legally binding.
A is effectively stating: "I am transferring the property in this cheque to you, but if the drawer fails to pay, you cannot come back to me for recovery." Mr.
B takes the cheque with full knowledge of this limitation.
This type of endorsement is valid and legally binding.