How can drawers and indorsers disclaim liability on an instrument? Does any different rule apply to drawers of checks?
Drawers and indorsers may disclaim their normal conditional liability by drawing or indorsing an instrument "without recourse." However, drawers of checks may not disclaim contractual liability. Even though a drawer or indorser places purchasers on notice that they may not rely on the credit of the person using "without recourse" and this phrase avoids normal contractual liability of a drawer or indorser to pay the instrument, the drawer or indorser may still be liable for breach of warranty.
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