Question

Explain the different kinds of endorsements.

Answer 1

When the person signs on the back of the instrument to transfer his interest, it is known as an endorsement.

The endorsement are of various types:
(1) Blank or general endorsement:

• When the endorser puts his mere signature on the back of an instrument without mentioning the name of the person to whom the endorsement is made, it is called Blank Endorsement

(2) The endorsement in full or special endorsement:

• If the endorser, in addition to his signature, mentions the name of the person to whom it is endorsed, is known as an endorsement in the full or special endorsement.

(3) Conditional endorsement:

• When the endorser of a negotiable instrument makes his liability dependent upon the happening of an event that may or may not happen, it is called a conditional endorsement.

(4) Restrictive endorsement:

• When an endorsement restricts or prohibits further negotiability of the instrument, it is called Restrictive Endorsement.

(5) Partial Endorsement:

• Where the endorsement seeks to transfer only a part of the amount payable under the instrument, the endorsement is called Partial Endorsement.