What is Endorsement under the Negotiable Instruments Act, 1881? Name the various types of Endorsements.

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2023
What is Endorsement under the Negotiable Instruments Act, 1881? Name the various types of Endorsements.

Answer & Explanation:

Where the maker or holder of a negotiable instrument signs the same otherwise than as such maker for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto (called Allonge), or so, signs for the same purpose; a stamped paper intended to be completed as a negotiable instrument, he is said to endorse the same. (Section 15 of the Negotiable Instruments Act, 1881). The person to whom the instrument is endorsed is called endorsee. In other words, 'endorsement' means and involves the writing of something on the back of an instrument for the purpose of transferring the right, title and interest therein to some other person. An endorsement may be: Blank or General; Special or Full; Restrictive; or Partial and Conditional or Qualified.

Topics: Negotiable Instruments Act, 1881

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