Define the term Endorsement and outline types of Endorsement giving examples in each.

      

Define the term Endorsement and outline types of Endorsement giving examples in each.

  

Answers


Ruth
Endorsement is the act of writing on the face of a bill to enable negotiability/transferability from the endorser to a third party. There are different types of endorsement such as:
i) Endorsement in blank. Occurs where the endorser writes on the face of bill „endorsed? and signs without specifying the name of the beneficiary. This act makes the bill to be payable to the bearer.
ii) Endorsement in full. Occurs where the endorser writes on the face of bill „endorsed to ............ or order? and signs specifying the name of the beneficiary. This act makes the bill to be payable to the specified party of his/her order.
iii) Conditional endorsement. Occurs where the endorser inserts a condition on the
bill e.g. pay James Kimani on marrying Margaret Njeri. This implies the bill will
only be paid if Kimani marries Njeri.
NatalieR answered the question on February 15, 2022 at 01:37


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