Multiple choice

'Sans Frais' words are added at the end of the endorsement to indicate that

  1. no expenses should be incurred on account of the bill

  2. expenses should be incurred on account bill

  3. expenses should be incurred on account of the bill only to the extent of 5% of the bill amount

  4. expenses should be incurred on account of the bill only to the extent of 10% of the bill amount
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A Correct answer
Explanation

Where the endorser does not want the endorsee or any subsequent holder to incur any expense on his account on the instrument, the endorsement is ‘sans frais’.

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