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ANDHRA PRADESH
Name : P. Samba Murthy,
Designation : Head of Department
Branch : D.C.C.P.
Institute : S.R.R.S. Govt. Polytechnic, Sircilla,
Karimnagar District
Year/Semester : V Semester
Subject : Banking – I
Subject Code : CCP- 504(B)
Topic : Negotiable Instrument Act
Duration : 50 Minutes
Sub-Topic : Definition of Endorsement
Teaching Aids : PPT
CCP504(B).65 1
Objectives
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1. What is Bill & give example?
2. Define Cheque?
3. What do you understand by ‘Endorsement’?
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Introduction
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Endorsement-Definition
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ENDORSEMENT (OR ‘INDORSEMENT’)
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Endorsement
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Endorsement
The person who so signs the instrument or
endorses the
instrument is called endorser.
The person to whom the instrument is endorsed
or transferred is called the endorsee.
But according to the common usage,
endorsement is usually made on the back of the
instrument
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ESSENTIALS OF A VALID ENDORSEMENT
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Essential a endorsement
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Maker or/Holder:
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Endorsement
Signature of Endorser:
It must be signed by the endorser for the purpose
of negotiation.
Signature of the endorser on the instrument
without any additional words is sufficient.
The endorser must sign his name in the same
spellings as appearing on the instrument if it is
payable to order.
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Endorsement
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Endorsement
Mode:
Endorsement may be made the endorser
either by merely signing his name on the
instrument or by any words showing an
intention to indorse the instrument to a
specified person.
In the latter case, endorsement need not
contain the complimentary prefix or suffix.
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Endorsement
Delivery:
Endorsement is completed only by delivery, actual
or constructive (Sec.15). The delivery must be
made by the Endorser himself.
If the delivery is conditional, the endorsement is
not complete until the condition is fulfilled.
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Summary
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Review Question
1. Define endorsement?
2. Briefly explain the essential or endorsement?
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Quiz
1. What is ‘allonge’?
Cheque
Promissory note
Demand draft
Endorsement on a slip annexed to bill
CCP504(B).65 18