BUSINESS LAW

ENDORSEMENT

Method of transferring a Negotiable instrument.

Endorsement means signing ones name on the back of a negotiable instrument for the purpose of transferring the interest, right or property in the instrument to another person.

ENDORSEMENT

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

Allonge – a separate paper when signed and attached with the instrument

ENDORSEMENT

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.

ESSENTIALS OF A VALID ENDORSEMENT

1. General or Blank Endorsement2. Special or Full Endorsement3. Restrictive Endorsement4. Sans Recourse Endorsement5. Sans frais Endorsement6. Partial Endorsement7. Conditional Endorsement8. Facultative Endorsement

KINDS OF ENDORSEMENT

1. BLANK ENDORSEMENT

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

2.FULL ENDORSEMENT

Restrictive endorsement means is an endorsement in which the endorser restricts the further negotiation (transferability)

3.RESTRICTIVE ENDORSEMENT

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.

4.SANS RECOURSE ENDORSEMENT

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.

5. SANS FRAIS ENDORSEMENT

In partial endorsement the Negotiable Instrument is endorsed for part of the amount.

Such endorsement is not valid.

6.PARTIAL ENDORSEMENT

It contains an order to pay only when a condition expressly laid down by the endorser is met with.

7.CONDITIONAL ENDORSEMENT

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

8.FACULTATIVE ENDORSEMENT

THANK YOU……………..

PRESENTED By

Vinayakan VIcm kannur

kerala