Conversion of endorsement in blank into endorsement in full (Section 49): The holder of a negotiable instrument endorsed in blank may, without signing his own name by writing above the endorsers, signature a direction to pay to any other person as endorsee, covert the endorsement in blank into an endorsement in full; and the holder does not thereby insure the responsibility of an endorser .
Effect of endorsement (Section 50): (a) The endorsement of an instrument, followed by delivery, transfers to the endorsee the property in the instrument with right of further negotiation. That is, the endorsee may endorse it to some other person.
(b) The endorsement may also contain express terms making it restrictive. The effect of restrictive endorsement is (1) to prohibit or exclude the right of further negotiation, or (2) to constitute the endorsee an agent to endorse the instrument; or (3) to entitle the endorsee to receive the contents of the instrument for the endorser or for some other specified person.
(c) A restrictive endorsement gives the endorsee: (1) the right to receive payment of the instrument; (2) the same rights of action against any other party to the instrument as the endorser had; (3) power, only in accordance with the express terms of his authority, to transfer the instruments and his right thereon to another.
(ix) Who may negotiate (Section 51): The following persons may negotiate an instrument: .
(1) sole maker, (2) drawer, (3) payee, (4) endorsee.
A maker or drawer only when the instrument is drawn to his own order. When the endorsee is the holder under a restrictive endorsement, he must exercise his power of negotiability is excluded by the respective endorsement, the endorsee, as holder, cannot negotiate.
The explanation to Section 51 provides that though a maker or a drawer may endorse or negotiate an instrument, he cannot do, so unless the instrument fall into his possession in a lawful manner or unless he is the holder thereof. Further, insofar as t he payee or an endorsee is concerned, he must before he can negotiate the instrument, be a holder thereof. Consequently, a person who steals or endorses or finds a lost instrument, cannot endorse or negotiate, as he is not a holder within the meanings of the Act.
(x) Exclusion of liability of endorser (Section 52): The
endorser of an instrument may, by express words in the endorsement, exclude his own liability on the instrument. Suppose that the endorser signs his name, adding the words “without recourse”, the incurs no liability. The holder cannot claim compensation from him in case of dishonoured by the drawee, acceptor or maker. But for the words “without recourse”, he would have been liable.
Effect of endorsement (Section 50): (a) The endorsement of an instrument, followed by delivery, transfers to the endorsee the property in the instrument with right of further negotiation. That is, the endorsee may endorse it to some other person.
(b) The endorsement may also contain express terms making it restrictive. The effect of restrictive endorsement is (1) to prohibit or exclude the right of further negotiation, or (2) to constitute the endorsee an agent to endorse the instrument; or (3) to entitle the endorsee to receive the contents of the instrument for the endorser or for some other specified person.
(c) A restrictive endorsement gives the endorsee: (1) the right to receive payment of the instrument; (2) the same rights of action against any other party to the instrument as the endorser had; (3) power, only in accordance with the express terms of his authority, to transfer the instruments and his right thereon to another.
(ix) Who may negotiate (Section 51): The following persons may negotiate an instrument: .
(1) sole maker, (2) drawer, (3) payee, (4) endorsee.
A maker or drawer only when the instrument is drawn to his own order. When the endorsee is the holder under a restrictive endorsement, he must exercise his power of negotiability is excluded by the respective endorsement, the endorsee, as holder, cannot negotiate.
The explanation to Section 51 provides that though a maker or a drawer may endorse or negotiate an instrument, he cannot do, so unless the instrument fall into his possession in a lawful manner or unless he is the holder thereof. Further, insofar as t he payee or an endorsee is concerned, he must before he can negotiate the instrument, be a holder thereof. Consequently, a person who steals or endorses or finds a lost instrument, cannot endorse or negotiate, as he is not a holder within the meanings of the Act.
(x) Exclusion of liability of endorser (Section 52): The
endorser of an instrument may, by express words in the endorsement, exclude his own liability on the instrument. Suppose that the endorser signs his name, adding the words “without recourse”, the incurs no liability. The holder cannot claim compensation from him in case of dishonoured by the drawee, acceptor or maker. But for the words “without recourse”, he would have been liable.
How endorsement in blank is converted into endorsement in full?
![How endorsement in blank is converted into endorsement in full?]()
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