What is an Endorsement?

2 min readDec 28, 2020

Depending on the context of its use, an endorsement can have different meanings. An endorsement may be a signature authorizing the legal transfer of a negotiable instrument between parties.

Endorsements can also be amendments to contracts or documents, such as life insurance policies or driver’s licenses.

A public declaration of support for a person, product, or service is also called an endorsement. For example, a WNBA basketball player may endorse a pair of Nike-brand shoes in a commercial.

Meaning of Endorsement:

The act of a person who is holder of a negotiable instrument in signing his or her name on the back of that instrument, thereby transferring title or ownership. An endorsement may be made if favour of another individual or legal entity, resulting in a transfer of the property to that other individual o legal entity. There are several types of endorsements:

  1. Endorsement in blank is the writing of only the endorser´s name on the negotiable instrument without designating another person to whom the endorsement is made, and with the implied understanding that the instrument is payable to the bearer.
  2. Collection endorsement is one that restricts payment of the endorsed instrument to purposes of deposit or collection.
  3. Conditional endorsement is one that limits time at which the instrument can be paid or further transferred or that requires the occurrence of an event before the instrument is payable.
  4. Restrictive endorsement is one that directs a specific payment of the instrument, such as for deposit or collection only, and that precludes any other transfer of it.

Types of Endorsement:

  1. Blank or general endorsement: It is a type of endorsement when the endorser just signs on the instrument without mentioning the name of the person in whose favour the endorsement is made. Endorsement in blank specifies no endorsee. It simply consists of the signature of the endorser on the endorsement.
  2. Special or full endorsement: In this type of endorsement contains not only the signature of the endorser but also the name of the person in whose favour the endorsement is made, then it is an endorsement in full.
  3. Partial endorsement: A partial endorsement is a type of endorsement in which purports to transfer to the endorsee a part only of the amount payable on the instrument. Such an endorsement does not operate as a negotiation of the instrument.
  4. Restrictive endorsement: A restrictive endorsement is one which either by express words restricts or prohibits the further negotiation of a bill or which expresses that it is not a complete and unconditional transfer of the instrument but is a mere authority to the endorsee to deal with bill as directed by such endorsement.

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