ENDORSEMENT KINDS OF ENDORSEMENT PAVITHRA.pptx

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1. ENDORSEMENT KINDS OF ENDORSEMENT PAVITHRA LAKSHMI T U19GP21M0023

2. Meaning Endorsement is a signature which is used to legally transfer a negotiable instrument from one party to another. This means signing one’s name on negotiable instrument like bills of exchange, a promissory note or a cheque with a view to transfer the interest, right, property or title in the instrument to another person.

3. Kinds of Endorsement Blank endorsement Full endorsement Restrictive endorsement Conditional endorsement Sana recourse endorsement Facultative endorsement

4. 1. Blank endorsement Blank endorsement is an endorsement without mentioning payee’s name and allowing any party in possession of the endorsed item to execute a claim once the cheque is signed, it can be used in a similar manner to cash

5. 2. Full Endorsement Full endorsement is an endorsement in which the endorser writes not only his name, but also the name of the person to whom the instrument is endorsed.

6. 3.Restrictive Endorsement A restrictive endorsement specifies the way in which a cheque can be negotiated. The most common form of restrictive endorsement is “Account payee”

7. 4. Conditional Endorsement Conditional endorsement where the endorser attaches one or more conditions to his or her liability on a negotiable instrument, such as “To be paid upon the completion of the contract”

8. 5. Sans recourse endorsement Under this endorsement, the endorser frees himself from any such liability arising from the dishonor of the instrument. For example pay Mr. X at his own risk.

9. 6. Facultative endorsement In case of facultative endorsement, the endorser waives or surrenders his right to receive to receive the notice of dishonor by writing the words “Notice of dishonor waived” after writing the name of the endorsee

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