Method of transferring a Negotiable instrument.

Endorsement means signing ones name on theback of a negotiable instrument for the purposeof transferring the interest, right or property inthe instrument to another person.

Endorser – The person who endorses or putting signature at back of the instrument is called the endorser

Endorsee-The person to whom the instrument is endorsed is called the endorsee

Allonge – a separate paper when signed and

attached with the instrument

Endorsement in pencil is valid in the eyes of law.

Endorsement on the face of an instrument is permitted by

law.

An instrument made payable to two or more persons

jointly should de endorsed by all of them.

An endorsement should be for the entire amount of the

instrument.

An endorsement may be blank or full or restrictive also.

1. General or Blank Endorsement

2. Special or Full Endorsement

3. Restrictive Endorsement

4. Sans Recourse Endorsement

5. Sans frais Endorsement

6. Partial Endorsement

7. Conditional Endorsement

8. Facultative Endorsement

The endorser writes not only the name of endorser, butalso the name of endorsee also.

Restrictive endorsement means is an endorsement in

which the endorser restricts the further negotiation

(transferability)

In this type of endorsement the endorser frees himself

from any liability like dishonor of instrument by

writing the word “sans recourse” after writing the

name of the endorsee.

Sans fraise means “without expense”.

Endorser doesn’t want any expense to be incurred on his a/c on

the instrument. That means he is liable for the amount of the

instrument only and not liable for any additional expenditrure

like noting and protesting charges.

In partial endorsement the Negotiable Instrument is

endorsed for part of the amount.

Such endorsement is not valid.

It contains an order to pay only when a condition

expressly laid down by the endorser is met with.

Where such words are added to an endorsement whereby

the endorser waives his right to receive notice of

dishonor, the endorsement is termed as facultative

endorsement

PRESENTED By

Vinayakan VIcm kannur

kerala