Conditional or Qualified Indorsement
This is one which negotiates or limits the indorser’s liability, in the following ways:
(a) By Sans Recourse Indorsement: The indorser excludes his liability by express words in indorsement.
Examples: (1) “Pay A or order
Sans Recourse”
(Sd) B
(2) “Pay A at his own risk”
(Sd) B
(1) “Pay A without recourse to me”
(Sd) B
(b) By making his liability depend upon the happening of a specified event, though such event may never happen.
Example : “Pay A or order on his marrying B”
(c) By making the right of the indorsee to receive the amount, depend upon the happening of a specified event, though it may never happen.
(d) By Facultative Indorsement: This is one which extents the liability of the indorser.
Example: “Pay A or order
Notice of dishonor waived”
(Sd.) B
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