Question

An endorsement is to be _______ where the endorser merely writes his signature on the back of the instrument, and the instrument so endorsed becomes payable to bearer, even though originally it was payable to order.

• A. Blank
• B. General
• C. Blank or general
• D. Restrictive

Answer 1

The correct option is C Blank or general

The word ‘endorsement’ in its literal sense means, a writing on the back of an instrument. In the words of Section 15, of the Negotiable Instruments Act, 1881 endorsement is defined as when the maker or the holder of a negotiable instrument signs the same otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, he is said to endorse the same and is called the endorser and the person to whom the instrument is endorsed is called the endorsee. General endorsement is an endorsement of a bill or note made without qualification. It is an endorsement in which no endorsee is named. An endorsement in blank without transferring the paper to some particular party is a general endorsement.