Question

​Explain, in as much detail as​ possible, how an endorsement is made.

Answer 1

Introduction:- Endrosement is when the holder of a negotiable instument sings his name on the back of the instrument for transfering the title or ownership of the instrument.

The person in favour of whose endorsement is made is called endorsee and the person who makes the endorsement is called endorser. It is generally done for the transfer of title of the instrument.

There are basically 5 types of endorsement:-

1) Blank endorsement - In this type of endorsement the endorser signs his name only and it is payable to bearer.

2) Restrictive endorsement - In this type of endorsement further negotiation of the instrument is restricted.

3)Partial endorsement - In this type of endorsement in which only a part of amount payable on the instrument is paid to th e endorsee.

4) Special endorsement/ Full endorsement - In this type of endorsement the endorser signs the instrument and also writes the name of per son to whom payment is to be made.

5) Conditional/Qualified endorsement - In this type of endorsement the transfer of title of the instrument is made on fulfilment of some certain condition only.

so, this is how endorsement is made by signing on the back of the instrument and endorser can choose any type of endorsement according to the situation.