Endorsement to operate as a negotiation.must be written back of the the bill. Endorsemment must be for the entire bill.it can not be for a part.if there are 2 or more payees all the payees or endoreses must sign it unless 1 person is authorised to do it.
A cheque or a bill is endorsed when the transferor puts his signature on the back or on along with a cheque and a bill as a part of negotiation if the cheque is bearer it needs no endorsement.
Requirements of Valid Endorsement: It must be on the back of the cheque or bill or on an along of them. It may be in ink, print or with stamp. Partial endorsement is not valid of the cheque or bill. Partial endorsement is not valid legally it must of the entire value of the cheque or bill.If the number of payees are more than one, then all the payees will sign or that person who is authorized.
The endorsement can also add the proper signatures, if the endorse is misprint. If the payees are more than two, the endorsement should be in the same order which is penned down on the back of the bill.
Classifications of Endorsement: If the endorsement makes the payment of a bill subjects to the fulfilment of a condition the endorsement is called the conditional.If the endorsement sign, but does not give his name to whom he wishes to transfer the cheque is called blank endorsement.
An endorsement which specifics the name of the transferee for the payment of the bill is called special endorsement.An endorsement which restricts the further negotiation of the bill is called restrictive endorsement.
Endorsement can be defined as the act of registering ones consent or acceptance. the requirement of a valid endorsement are signature, stamps and seals , tomb printing etc.
