Negoatiation Endorsement

1. Roll No Name of Students
A-7 Jheel
A-8 Reena
A-17 Neha Kazare
A-27 Affaan Shaikh
Subject: Legal & Tax
Topic:Negoatiation Endorsement
Submitted to : Prof. Santosh

2. Negotiation
The transfer of a check, promissory note, bill
of exchange or other negotiable instrument to
another for money, goods, services or other
benefit.
Give-and-take discussion or conference in an
attempt to reach an agreement or settle a
dispute.

3. Endorsement
Example
A cheque or a bill is endorsed when
the transferor puts his signature on
the back or on an along with a cheque
and a bills as a part of negotiation. If
the cheque is bearer it needs no
endorsement.

4. Requirements Of Valid Endorsement
1. It must be signed by the holder.
2. In case of illiterate, a thumb impression should be fixed.
3. It must be on the back of the cheque or bill or on an along of them.
4. It may be in ink, print or with a stamp.
5. Partial endorsement is not valid legally it must be of the entire value of the cheque
or bill.
6. If the number of payee are more then one then all the payees will sign or that
person who is authorized.
7. The endorsee can also add, the proper signatures if the endorse is not clear.
8. If the payee are more than two the endorsement should be in the same order
which is opened down on the back of the bill.
9. It should be completed by the delivery.
10. The intention must be clearly expressed.

5. Who may Endorse?
Types Of Endorsement
1. Blank Endorsement
2. Restrictive Endorsement
3. Conditional Endorsement
4. Special Endorsement
5. Partial Endorsement

6. Types of Endorsement
1. Blank Endorsement – Endorser signs his
name without mentioning the name of the
preson to whom the cheque is endorsed.
Sd/
B. CHANDRASHEKAR

7. 2. Restrictive Endorsement - The endorser restricts the further
negotiation of the cheque by expressing in words at the back
od the cheque.
“Pay K. Ram Chandra only”
Sd/-
B. Chandrasekhar
“Pay K. Ram Chandra for my use”
Sd/-
B. Chandrasekhar

8. 3. Conditional Endorsement – The endorsement to
may be preceded by certain condition which
should be fulfilled by the endorsee to receive the
payment.
“Pay Ram or Order on the arrival of Sumit at J.P nagar,
Mumbai by 30 September,2008.
Sd/-
B. Chandrasekhar

9. 4.Special Endorsement – Endorser not only
write his name but also the name of the person
to whom cheque is endorsed.
Pay B.S. Lather or Order
Sd/-
B.CAHNDRASHEKAR

10. 5. Partial Endorsement :-If the bill purposes to
be endorsed for a part of the amount payable,
the endorsement is called partial. It is legally
ineffective.
Mr. Anthony holds the bill for ten thousands and endorses in favour of
Mr. Qazi for Rs. 5 thousand and also in favour of Mr. Hyden for Rs. 5
thousand. It is a partial and invalid.
Sd/-