Can an instrument be endorsed for the partial amount? Explain.
CS Professional · Banking - Law and Practice · PYQS · June 2015
Can an instrument be endorsed for the partial amount? Explain.
Answer & Explanation:
As per the provision of Section 56 of the Negotiable Instruments Act, 1881, no writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount appearing to be due on the instrument. Thus, the instrument is to be endorsed for the full amount and it cannot be endorsed for the partial amount.
Topics: Banking Law and Practice
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