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Endorsement

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An Endorsement (or Indorsement) is a signature of a person, generally made at the back of an instrument, for the purpose of transfer of rights to another person.

An Allonge is a paper slip attached to a bill of exchange, enabling further endorsements.

Essentials of an Endorsement

  • An endorsement must have been a regular endorsement and it should not have been torn and pasted together. At least if the tear appears, it shows an intention to cancel it.
  • Cheques and other instruments collected for account f the ostensible payee will not require examination for indorsement, or in the case of dividend and interest warrants for discharge except in few cases.
  • Cheques and other instruments payable to a bank to be applied after collection for the credit of a customer's account, they will not require indorsement or discharge by the payee bank.
  • Complimentary and courtesy titles should not be used. Ex: Mr., Dr. etc
  • Correct spelling of the name should be used
  • Cheques payable to illiterate person should be endorsed with their left hand thumb impressions
  • Endorsement by a deceased person
  • Endorsement by a partnership firm / company
  • Joint payees
  • Only back of the cheque
  • Allonge
  • Two contracts

See Also