endorsement of negotiable instrument ,roll no -11.pptx

Endorsement of negotiatiable instrument

1. NAME-KUMARI DIVYA ROLL NO.-11 BUSSINESS LAW ENDORSEMENT OF NEGOTIABLE INSTRUMENT

2. Endorsement: Meaning When a negotiable instrument is signed by one person to another in such a manner that the right to receive the payment on the basis of the negotiable instrument is transferred to the other person, it is known as endorsement or we can say that transfer of ownership of the instrument is endorsement.

3. Parties of Endorsement Endorser Endorsee Who signs the instrument In whose favor endorsement is made

4. Endorser of Negotiable Instrument The following persons can endorse a Negotiable Instrument – Holder Payee Endorsee

5. Essentials features of Valid Endorsement Endorsement must be made On the instrument itself. • it must be signed by endorser or his duly authorised person. Written in Ink • Post of Qualification Signed by Endorser 5 • Name of Endorser Endorsement of Entire • In case of Married women . Illiterate person . Delivery after endorsement

6. Rules Regarding Endorsement Signature of the Endorser Spelling “Kudeep Mehta” “Kudip Mehta” No addition or omission of initial of the name Prefixes or suffixes to be excluded Effects of endorsement: The endorsee becomes holder. Right to negotiate

7. Types of Endorsement Blank or general endorsement Endorsement in full or special endorsement Conditional endorsement Restrictive endorsement Endorsement ‘Sans Recourse’ Facultative endorsement Forged endorsement Partial Endorsement

8. Blank or General Endorsement If the endorser signs his name only and does not specify the name of the endorsee, the endorsement is said to be in blank Sec. 16(1). The effect of a blank endorsement is to convert the order instrument into bearer instrument (Sec. 54), which may be transferred merely by delivery. This type of endorsement is payable to the bearer.

9. Endorsement in Full or Special Endorsement

10. Conditional Endorsement

11. Restrictive Endorsement

12. Endorsement ‘Sans Recourse’ Sec 52- When the endorser expressly excludes his own liability on the negotiable instrument to the endorsee or any subsequent holder in case of dishonor of the instrument, the recourse’ endorsement is known as ‘sans endorsement. Eg: Pay A or order Sans recourse

13. Facultative Endorsement

14. Forged Endorsement A fake endorsement is one in which signature of any of the party is fake which makes the instrument invalid

15. Partial Endorsement A partial endorsement is one which means to transfer the document only for a part of its value ordinarily a partial endorsement is not valid. When any amount has already been paid, a note to that effect may be endorsed on the instrument which can then be negotiated for the balance of the said amount.

16. Conclusion Endorsement have a powerful influence on consumer behaviour by creating trust ,credibility ,and the perception of quality .consumers are more likely to choose products or services endorsed by individuals or organizations they admire or trust ultimately leading to increased sales and brand loyality .

17. Thank Y ou