(a) “Indorsement” means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring indorser's liability on the instrument, but ...

What is the indorsement?

Indorsement, sometimes written as Endorsement, of an instrument means signing it. The indorsement signifies that the individual signing the instrument certifies certain things about it to the primary parties liable on the instrument (maker or drawer) and to any subsequent holder of the document.

What is endorsement of negotiable instrument?

The act of a person who is holder of a negotiable instrument in signing his or her name on the back of that instrument, thereby transferring title or ownership.

What is a indorsement in law?

An indorsement — the placement of a signature on the back of a negotiable instrument — coupled with an additional phrase, e.g. "without recourse" or "for deposit only," limiting the liability of the indorser (signer) in the event the instrument is dishonored.

What is indorsement and explain different kinds of indorsement?

Special Endorsement – Where the endorser puts his sign and writes the name of the person who will receive the payment. Restrictive Endorsement – Which restricts further negotiation. Partial Endorsement – Which allows transferring to the endorsee a part only of the amount payable on the instrument.

Indorsement of a Negotiable Instrument

43 related questions found

What are the types of indorsement?

KINDS OF INDORSEMENT

• Special.
• In blank.
• Absolute.
• Conditional.
• Restrictive.
• Qualified.
• Joint.
• Successive.

What are the different types of indorsement?

Types of Endorsement

• Blank or General Endorsement.
• Full Endorsement or Special Endorsement.
• Conditional Endorsement.
• Restrictive Endorsement.
• Partial Endorsement.
• Facultative Endorsement.

What is indorsement in negotiable instrument Philippines?

When 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, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse ...

Is indorsement and endorsement same?

An endorsement is a public indication of approval or support. An indorsement is a legal signature on some financial documents, like checks.

What is indorsement of Cheque?

When someone pays you with a check, you'll usually have to sign the back of it before you can deposit it in your account. Signing the back of it is called “endorsing the check.” What you write when you sign it—how you endorse the check—depends upon what you want to do with the check and how the check is written.

What are 3 types of endorsements?

There are three main types of endorsements:

• Blank endorsement. The term "blank endorsement" can be confusing because it doesn't mean that an endorsement is, strictly speaking, blank. ...
• Restrictive endorsement. ...
• Endorsement in full.

What are the 4 types of endorsements?

Four principal kinds of endorsements exist: special, blank, restrictive, and qualified. An endorsement that clearly indicates the individual to whom the instrument is payable is a special endorsement.

What is endorsement bill?

Endorsement of the bill implies the procedure by which the maker or holder of bill transfers the title of the bill in assistance of his/her creditors. The individual transferring the title is called “Endorser” and the individual to whom the bill is exchanged called “Endorsee”.

What is the effect of indorsement?

An indorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual.

What is indorsed mean?

transitive verb. 1a : to write on the back of especially : to sign one's name as payee on the back of (a check) in order to obtain the cash or credit represented on the face. b : to inscribe (one's signature) on a check, bill, or note.

What is a special indorsement?

(a) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, it is a “special indorsement”.

Who may endorse?

3. Who may endorse? The payee of an instrument is the rightful person to make the first endorsement. Thereafter the instrument may be endorsed by any person who has become the holder of the instrument.

Who is endorse?

Endorsements. Endorsements are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness amongst the people. Such people advertise for a product lending their names or images to promote a product or service.

What does restrictively endorse mean?

A restrictive endorsement is a conditional guaranty of a transfer of a negotiable instrument. That is, an endorsement that takes effect only on the occurrence or non-occurrence of another act or event.

Is an indorsement a contract Why or why not?

The usual qualified indorsement consists of the words “without recourseLanguage used in a qualified indorsement to limit indorser's contract liability.,” which mean that the indorser has no contract liability to subsequent holders if a maker or drawee defaults. A qualified indorsement does not impair negotiability.

Who is a general Indorser?

63. When a person deemed indorser. A person placing his signature upon an instrument otherwise than as maker, drawer, or acceptor, is deemed to be indorser unless he clearly indicates by appropriate words his intention to be bound in some other capacity.

Who can present the bill for acceptance?

Any person who is not already liable on the bill, with the holder's consent may accept the bill for honour of any party thereto, by writing on the bill when the bill has been noted or protested for non-acceptance or better security. This person is the Acceptor for Honour.

Which type of indorsement may prohibit the further negotiation of a negotiable instrument?

A restrictive indorsement includes the payees signature and instructions that limit the instrument to a particular use. Generally, a restrictive indorsement is not effective to prevent further negotiation of the paper.

What is an unqualified indorsement?

Term. unqualified indorsement. Definition. an indorsement whereby the indorser promises to pay the holder or any subsequent indorser the amount of the instrument if the maker, drawer, or acceptor defaults on it.