Question

An endorsement is said to be partial endorsement, if it satisfies which of the following conditions?

• A. If the endorser sings his name only.
• B. If the endorser adds a direction to pay the amount mentioned in the instrument to the order of a, specified person.
• C. If the endorse restricts or excludes the right to further negotiate the instrument.
• D. If the endorser purports to transfer to the endorsee only a part of the amount payable.

Answer 1

Answer: (D)

If the endorser purports to transfer to the endorsee only a part of the amount payable.

Partial endorsement has been defined in section 56 of the Negotiable Instruments Act, 1881. Negotiation by endorsement must be of the entire instrument. An endorsement which purports to transfer to the endorsee only a part of the amount payable, or which purports to transfer the instrument to two or more endorses severally, is not valid as a negotiable of the instrument; but where such amount has been paid in part, a not to that effect maybe endorsed on the instrument, which may then be endorsed for the balance. The endorser directs the transfer only a part of amount payable on a bill of exchange or promissory note through such endorsement.