business law ppt
TRANSCRIPT
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
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
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.
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