Endorsement - Kind Of Endorsement

ENDORSEMENT The word endorsement has been driven from a Latin word “Endorse” means on the back. In other words: “It refers to writing of a person’s name on the back or face of a negotiable instrument or on a piece of paper attached to it for the purpose of transferring the property in the instrument. The endorsement must be unconditional and for the entire amount of the bill or cheque. The person negotiation the instrument is called an endorser and to whom it is transferred is called and endorsee”.

KIND OF ENDORESMENT 

GENERAL ENDORSEMENT: It is made without referring to any person. It is made simply by signing the name without naming the endorsee.

SPECIAL ENDORSEMENT: When the endorser transfers the credit instrument to a particular person by naming him in the instrument it is known as a special endorsement.

CONDITIONAL ENDORSEMENT: When endorsement is made along with a condition it is known as qualified or conditional endorsement. 

RESTRICTIVE ENDORSEMENT: When an endorser transfers the credit instrument to a person and adds the word ‘only’ after his (endorsee’s) name, this endorsement is known as restrictive endorsement. In other words further endorsement of that instrument cannot be made. 

PARTIAL ENDORSEMENT: When the endorsement is made for a part of the amount rather than the full, it is known as a partial endorsement. By law such an endorsement is not acceptable