Types of Endorsements that could be used on bill of Exchange

With reference to negotiable instruments: Highlight four types of endorsements that could be used on a bill of exchange

Types of Endorsements that could be used on bill of Exchange

  • Blank: This endorsement which does not specifies the endorsee. If convents an order bill to a bearer bill.
  • Special: This is an endorsement which specifies the person to whom or to whose order, the bill is payable. g
  • Conditional: This is an endorsement which either exempts the endorsee from liability if the bill is dishonored or makes payment of the bill subject to a specified condition. ,
  • Restrictive: This is an endorsement which prohibits further negotiation of the bill. It constitutes the endorsee as the payee who cannot negotiate the bill any further.



Share through

Leave a Reply

Your email address will not be published.