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In relation to the law governing Negotiable Instruments, explain four types of endorsements that may be made on a Bill of Exchange.

      

In relation to the law governing Negotiable Instruments, explain four types of
endorsements that may be made on a Bill of Exchange.

  

Answers


Raphael
1. Blank endorsement
Section 34 (1) of the Bill of Exchange Act provides that an endorsement in blank specifies
no endorsee. Its effects is to convert the order bill into a bearer bill.?

2. Special endorsement
A special endorsement is an endorsement which specifies the person to whom, or to order, the bill is
to be payable. Sec 34 (4) provides that when a bill has been endorsed in blank any holder may convert
the blank endorsement into a special endorsement by writing above the endorsee?s signature a
direction to pay the bill to the order of himself or some other person.?

3. Restrictive endorsement
An endorsement is restrictive which prohibits further negotiation of the bill e.g. a bill
endorsed “pay x only” or “pay x for the account of Y.” This gives the right to the
endorseeto claim payment on the bill but prohibits him from transferring the right of
payment to anyone else.

4. Conditional endorsement
Section 33 of the Act provides that where a bill purports to be endorsed conditionally, the
condition may be disregarded by the payer, and payment to the endorsee is valid whether
the condition has been fulfilled or not.?
raphael answered the question on April 16, 2018 at 17:39


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