Introduction

• A negotiable instrument is a written contract that

guarantees the benefit from one person to
another. In other words, it is a transferable, signed
document that promises the bearer a sum of
money in the future when demanded. The person
who receives the payment is called a payee and he
must be named or otherwise indicated on the
instrument.
 Meaning
• These instruments are nothing but documents which have monetary value and are
exchangeable. Hence, the two main characteristics of Negotiable Instruments are
financial worth and transferability.
• Negotiable Instruments are signed legal documents that guarantee paying a
particular amount to a person or party at a set date or on-demand. It acts as an
assurance of payment or repayment that the assignee expects. Based on the nature
of the note, this document may or may not contain the recipients’ names.
• As per sec 60, A negotiable instrument may be negotiated until payment or
satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not
after such payment or satisfaction. However, the person getting such an
instrument is not ‘Holder in due Course’ and does not enjoy protections available
to ‘holder in due Course’.
 Definition
• According to Section 13 (a) of the Act 1881, “Negotiable instrument means a
promissory note, bill of exchange or cheque payable either to order or to bearer,
whether the word “order” or “ bearer” appear on the instrument or not.”
• In the words of Justice Willis, “A negotiable instrument is one, the property in
which is acquired by anyone who takes it bona fide (good faith) and for value
notwithstanding any defects of the title in the person from whom he took it”.
• Negotiable instrument “is a transferable, signed document that promises to pay
bearer a sum of money at a future date or on demand”
• It is a written document signed by the issuer.
• It is like a valid contract easily transferable from one party to another. The holder
can transfer the document to another individual or entity without hassle. It is this
feature that makes such instruments negotiable.
• As named on the instrument, the payee enjoys complete ownership of the legal
document. This means the title gets transferred when the note is handed over to
the consecutive parties.
• A negotiable instrument always mentions the payee’s name, which signifies
making the payment to a specific person or firm.
• In addition to the payee, the time is also predetermined and is certain. A payee can
present the document to encash it or receive the payment as promised within the
specified date or on-demand.
• There is flexibility as the payee can receive the funds in cash or transfer the
document to another party for consecutive usage.
 TYPES OF NEGOTIABLE INSTRUMENTS

• Negotiable instruments are of 2 types:

a) Negotiable by statute and
b) Negotiable by custom or usage
Negotiable by statute : Promissory notes, bills of exchange and cheques. Hence,
they are negotiable by statute.
Negotiable by custom or usage : All other documents which have acquired the
character of negotiability by the usage of trade are negotiable by usage. They
treasury bills, commercial papers, certificate of deposits.
 Promissory notes

• According to Section 4 of Negotiable Instruments Act, “A promissory note is an

instrument in writing (not being a bank-note or a currency-note) containing an
unconditional undertaking, signed by the maker, to pay a certain sum of money
only to, or to the order of, a certain person, or to the bearer of the instrument.”
• A promissory note means one party promises to pay a sum of rupees to another
party whose name is mentioned on the note along with a fixed future date.
Generally, it is used as short-term trade credit, , and the maker pays the due
amount on or before the note’s expiry. As a safe mode of transferring money,
business people frequently use it to have smooth business transactions.
• Individuals or firms can claim the outstanding funds after the expiry of the term in
the event of non-payment of the promised money.
 Features /Characteristics of Promissory Note
1) must be in writing:
A promissory note has to be in writing. An oral promise to pay does not become a promissory note. The
writing may be on any paper or book. The intention of the maker of the note should be signified by writing in
clear words on the instrument itself that he undertakes to pay a particular sum of money to the payee or
order or to the bearer.
2) It must contain a promise to pay: The promise to pay must be expressed. It cannot be implied. A mere
acknowledgment of indebtness is not enough. Although it is valid as an agreement and may be sued upon as
such.
• Ex: A signs the instruments in the following terms:
• “Mr. B - I owe you Rs.1,000.”
• “I am liable to pay to B Rs.500.”
• The above instruments are not promissory notes as there is no undertaking or promise to pay.
• There is only an acknowledgement of indebtedness where A signs the instrument in the following terms:
• “I acknowledge myself to be indebted to B in Rs.1,000, to be paid on demand, for value received,” there is
a valid promissory note.
3) The promise to pay must be definite and unconditional-
The promise to pay contained in the note must be unconditional. If the promise to
pay is coupled with a condition, it is not a promissory note.
• Ex: A signs the instruments in the following terms:
• “I promise to pay B Rs. 500 seven days after my brother’s marriage with C” “I
promise to pay B Rs. 500 as soon as I can.”
• The above instruments are not valid promissory notes as the payment is made
depending upon the happening of an uncertain event which may never happen
and as a result the sum may never become payable.
4. It must be signed by the maker:

• Unless the maker signs the instrument, it is incomplete and of no legal effect.
Therefore, the person who promises to pay must sign the instrument even though
it might have been written by the promisor himself.
5) The maker must be a certain person: The instrument should show on the fact of
it as to who exactly is liable to pay. The name of the maker should be written clearly
and ascertainable on seeing the document. In case 2 or more persons promise to
pay, they may bind themselves jointly , their liability cannot be in the alternative.
6) The payee must be certain: The money must be payable to a definite person or
according to his order. The payee must be ascertained by name or by designation.
But it cannot be made payable either to bearer or to the maker himself.
7) The promise should be to pay money-

The promissory note should contain a promise to pay money and money only, i.e., legal tender
money. The promise cannot be extended to payments in the form of goods, shares, bonds,
foreign exchange, etc.
8) It should bear the required stamping- The promissory note should, necessarily, bear sufficient
stamp as required by the Indian Stamp Act, 1889.
9) It should be dated- The date of a promissory note is not material unless the amount is made
payable at particular time after date. However to calculate the interest or fixing the date of
maturity period the date is essential. It may be ante-dated or post-dated. If post-dated, it cannot
be sued upon till appearing (shown in the bill) date.
10)Demand- The promissory note may be payable on demand or after a certain definite period of
time.
11) The rate of interest- It is unusual to mention in it the rated of interest per annum. When the
instrument itself specifies the rate of interest payable on the amount mentioned it, interest must
be paid at the rate from the date of the instrument.
 2. BILLS OF EXCHANGE
• Section 5 of the Negotiable Instruments Act defines a Bill of Exchange as “A Bill
of exchange is an instrument in writing containing an unconditional order, signed
by the maker, directing a certain person to pay a certain sum of money only to, or
to the order of, a certain person or to the bearer of the instrument.” It is also called
as a Draft.
• Illustration:
• Mr. X purchased goods from Mr. Y for Rs.1000/- Mr. Y buys goods from Mr. S for
Rs.1000/-
• Then Mr. Y may order Mr. X to pay Rs.1000/- Mr. S which will be nothing but a bill
of exchange.
• Drawer: The drawer or the creditor is the person who creates the bill of exchange and is
entitled to receiving the sum in return of the goods sold on credit.
• Drawee: The drawee is the one on whom the bill is drawn and who owes the amount to the
drawer or the payee.
• Payee: The person who is liable to receive the sum as mentioned in the bill of exchange is
known as the payee. The drawer can be the payee if he/she does not endorse the bill to
someone else.
• Other Parties: Apart from the above mentioned three parties, some more people are also
associated with a bill. They are as follows:
• Holder: A holder is a person who has the possession of the bill or is the bearer of it and is
liable to recover the amount. Both payee or endorsee can be the holder of a bill of
exchange.
• Acceptor: The person on whom the bill is drawn, i.e. the drawee who owes the amount to
the payee and therefore accepts to pay the same by signing the bill of exchange.
• Endorser: The holder who transfers the bill of exchange in the name of some other person,
making him/her the payee is known as an endorser.
• Endorsee: An endorsee is a person on whose name the bill of exchange is transferred by
the endorser and who becomes the payee and holder of that bill.
 Parties to a Bill of Exchange

• i. The Drawer – The person who draws a bill of exchangeis called the drawer.
• ii. The Drawee – The person on whom such bill of exchange is drawn and who is
directed to pay is called the drawee.
• iii. The Payee – The person to whom the payment is to be made.
• The drawer can also draw a bill in his own name thereby he himself becomes the
payee. Here the words in the bill would be Pay to us or order. In a bill where a time
period is mentioned is called a Time Bill.
• But a bill may be made payable on demand also which is called a Demand Bill.
 Features /Characteristics of bills of exchange
1. It must be written: The bills of exchange should be in writing format. No verbal note
would be considered as valid.
2. Stamped by Drawer: It holds a legal stamp to ensure its validity.
3. Duly Signed by Drawee: A bill of exchange is duly accepted and signed by the drawee
who owes the sum to the payee.
4. Unconditional Order: it must contain definite and an unconditional order to pay. A
conditional instrument is invalid.
5. It must contain an order to pay : the bill of exchange must contain an order by the
drawer to the drawee to pay under any circumstances.
6. Payable to a certain person: bill may be made payable to two or more payees jointly
or in the alternatives.
7. The bill must contain an order to pay money only.
8. Stamped by Drawer: It holds a legal stamp to ensure its validity.
9. Date of Payment: The date of payment is mentioned on the bill of exchange.
 Classification of Bill of Exchange

• A bill of exchange can be categorized into various kinds, based on the residential
status of the parties, date of maturity and purpose of the bill. They are as follows:
1. Inland Bills: A bill of exchange drawn within the geographical boundaries of a
country, when the drawer, drawee and payee resides in that particular country,
is known as an inland bill.
2. Foreign Bills: When a drawer makes a bill in one country to be accepted and
payable by the drawee in some other country, this bill of exchange is called a
foreign bill.
3. Demand Bills: These bills of exchange do not have a specific date or period of
repayment; instead, these are payable on demand of the payee or holder.
4. Term Bills: The bills of exchange payable on a specific date or after a definite
period are called term bills.
5. Trade Bills: Trade bills are those who are drawn by the seller or creditor at the
time of selling goods on credit to the drawee.
6. Accommodation Bills: The bill which is drawn by a lender to provide financial
support or aid to the drawee or the borrower is known as an accommodation bill.
7. Fictitious bill: it is a type of bill in which the name drawn is fictitious (imaginary)
that is either or drawer or drawee.
8. Forged bill: Forged bill are those in which name of the drawer or the payee has
been forged. Such a bill cannot be enforced by law and does not hold good even in
the hands of holder in due course.
CHEQUE
 Definition
• A cheque is a bill of exchange in which one party orders the bank to transfer the
money to the bank account of another party. It is a negotiable instrument that is
covered under the Negotiable Instruments Act, 1881. There are three parties
involved in the transaction – the drawer is the person who writes the cheque, the
drawee is the bank that has to transfer the funds and the payee is the person in
whose name the cheque has been issued. A cheque can be issued against a savings
account or a current account.
• Dr. H.L Hart, defines “ A cheque is an unconditional order in writing drawn on a
Banker, signed by the drawer, requiring the banker to pay, on demand a certain
sum of money to or to the order of a specified person to the bearer and which
does not order any act to be done in addition to the payment of money.”
• Lord Charley defines “A cheque is a written order by which a customer requires his
banker to repay the money which has been lent to him.”
 Types of Cheque

1. Open Cheque: Otherwise called as uncrossed cheque, it is one on which cash is payable
at the counter of the bank, or it is transferred to the bank account of the person whose
name is written on the cheque. It is negotiable, i.e. it is transferable in nature.
2. Bearer Cheque: Bearer cheque refers to the cheque which can be encashed by the
person whose name is written on the cheque or anyone who presents the cheque before
the bank for payment. It is negotiable in nature, which can be transferred by simply
delivering it and so endorsement is not needed. No identification of the presenter or
holder is required in case of a bearer cheque.
3. Order Cheque: As the name suggests, it is the cheque which becomes payable to the
person or organization whose name is specified on the cheque or to his order. To
convert a bearer cheque into an order cheque, the word ‘ bearer’ is stricken off from the
cheque. Endorsement of the cheque to the third party is done by simply signing on the
cheque.
Open cheque
Bearer cheque
Order cheque
4. Crossed Cheque: You might have observed, two transverse parallel lines at the
top left corner of some cheques, which may or may not have the words – & Co., A/c
payee or Non-Negotiable. Such cheques are regarded as crossed cheques. The
amount on such cheques is credited to the account of the payee.
5. Self Cheque: When a person wants to withdraw money from his own account, by
writing ‘self’ at the name of the payee, is called self-cheque. Do not cross the
cheque or cancel the words ‘or bearer’ from the cheque. These cheques should not
be crossed, as well as the words ‘or bearer’ should not be stricken off from the
cheque, so that any person as your representative can receive the amount on your
behalf.
6. Blank Cheque: A cheque which is only signed, but the name of the payee and
date is not indicated, is called a blank cheque. Such cheques can be made account
payee, and the maximum limit of withdrawal can be mentioned.
Crossed Cheque
Self Cheque
7. Stale Cheque: A cheque bears a date and is valid up to three months of the stated
date. If a cheque is presented before the bank, after the expiry of the reasonable
period, i.e. three months after the date, then it is called stale cheque.
8. Post-Dated Cheque: When a cheque is drawn containing a future date, it is called
post-dated cheque. In such cases, money will not be payable by the bank before
that date.
9. Ante-dated Cheque: A cheque containing a prior date, is called an ante-dated
cheque. Bank honours cheques until three months to the date mentioned.
10. Banker’s Cheque: Otherwise called a pay order, it is a non-negotiable
instrument, which is issued by the bank on behalf of the customer, which is payable
in the same city.
11. Cancelled Cheque: Due to any kind of mistakes while writing the cheque, it is
cancelled, and so it is called cancelled cheque.
Stale Cheque
12. Mutilated Cheque: A cheque which is torn, damaged, crushed or washed, is
called a mutilated cheque. Such cheques are honoured only when certain details are
visible, after confirming with the drawer.
13. Traveler’s Cheque: A cheque issued by a bank for a fee, containing a fixed
amount. These cheques are enchased or used to make payment in a foreign country,
after endorsement by the signature of the holder.
14. Gift Cheque: Cheques that are used for the purpose of gifts and prizes, usually
very large in size, are called Gift Cheques. Banks charge a fee for issuing such
cheques.
Mutilated Cheque
Traveller’s cheque
Gift cheque
 General Cheque Crossing

• According to Sec 123 , in general crossing, the cheque bears across its face an
addition of two parallel transverse lines and/or the addition of words ‘and Co.’ or
‘not negotiable’ between them.
• In the case of general crossing on the cheque, the paying banker will pay money to
any banker. For the purpose of general crossing two transverse parallel lines at the
corner of the cheque are necessary.
• Thus, in this case, the holder of the cheque or the payee will receive the payment
only through a bank account and not over the counter. The words ‘and Co.’ have
no significance as such.
• But, the words ‘not negotiable’ are significant as they restrict the negotiability.
 Effect of General Crossing
• Cheques which are generally crossed by the drawer can only be paid into a bank
account of the payee whose name written on the cheque.
• They cannot be encashed over the counter by bearer or payee. Both bearer and
order cheques can be crossed.
• However, drawer can make it bearer cheque by cancelling the crossing, writing
that CROSSING IS CANCELLED and Putting full signature verifying the crossing
cancellation.
 Special Cheque Crossing

• According to section 124, In special crossing, the cheque bears across its face an
addition of the banker’s name, with or without the words ‘not negotiable’.
• In this case, the paying banker will pay the amount of cheque only to the banker
whose name appears in the crossing or to his collecting agent.
• Thus, the paying banker will honor the cheque only when it is ordered through the
bank mentioned in the crossing or its agent bank.
• However, in special crossing two parallel transverse lines are not essential but the
name of the banker is most important.
 Effect of Special Crossing
• The bank makes payment only to banker whose name is written in special
crossing.
• There can be two special crossing. In this collecting banker add an additional
crossing and write the name of other bank who act as their agent in collection of
cheque. It allow other bank to collect the amount on their behalf.
Restrictive Crossing / Account Payee Crossing
• This type of crossing restricts the negotiability of the cheque. It directs the
collecting banker that he needs to credit the amount of cheque only to the
account of the payee, or the party named or his agent.
• Where the collecting banker credits the proceeds of a cheque bearing such
crossing to any other account, he shall be guilty of negligence.
• Also, he will not be eligible for the protection to the collecting banker under
section 131 of the Act.
• However, such crossing will have no effect on the paying banker. This is so because
it is not his duty to determine that the cheque is collected for the account of the
payee.
 Not negotiable crossing
• It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines
across the face of the cheque in the case of general crossing or in the case of special
crossing along with the name of a banker.
• The Not Negotiable Crossing does not mean that the cheque is non-transferrable. As per
section 130 of the Negotiable Instruments Act, 1881 a person taking a cheque bearing a
general or special crossing with the words ‘not negotiable’ will not have and is neither
capable of giving a better title than that which the person from whom he took it had.
• One of the important features of a negotiable instrument is that a person who receives it
in good faith, without negligence, for value, before maturity and without knowing the
defect in the title of the transferor, gets a good title to the instrument.
• Thus, he becomes the holder in due course and acquires an indisputable title to it. Also,
when the instrument passes through a holder in due course, all the subsequent holders
also receive a good title.
• But, Not Negotiable Crossing takes away this important feature. In this case, the
transferee does not get the rights of the holder in due course.
 ACCOUNT PAYEE CROSSING
• The cheque must contain the words ‘account payee’ or ‘account payee only’. The
cheque must be crossed generally or specially. The effect of this type of crossing is
that the cheque does not remain negotiable anymore.
• Amount payee crossing term represents that the amount cannot be returned in
any other bank account. This is apart from the one stipulated in the cheque.
Practising amount payee crossing also assures that the money is given to the bank
account only and is not given in the form of liquid cash.
 Material alteration

• Any changes made in the cheque is known as material alteration. When the
changes are made in cheques, it loses its original character and affects the rights
and liabilities of parties to the cheque and such altered cheques become invalid.
They may be made valid by obtaining the full signature of the drawer at the places
where the alterations are made.
• If the alterations are confirmed by the drawer, banker can honour the cheque,
otherwise he has to return the cheque.
• The material alteration of a cheque renders such instrument void and same cannot
be enforced against any person who was a party to such instrument at the time of
material alteration and did not give his/her approval to it.
 Material alteration
• The following are not considered as material alteration under N.I.Act:
• filling up of incomplete instrument (sec 20)
• Conversion of blank endorsement into a special endorsement (section 49).
• Qualifying or limiting an acceptance (section 86)
• Crossing of a cheque by holder (section 125)

• All material alteration must have drawer’s approval with his full signature (not initials) where the
alterations are made. Due to the effects of Material Alteration, the said instrument become a void (not
valid)
Effects of Material Alteration
• The material alteration of a cheque renders such instrument void and same cannot be enforced against
any person who was a party to such instrument at the time of material alteration and did not give his/her
approval to it.
 Alterations allowed by law
• Alteration in instrument date
• Alteration in Amount Payable
• Alteration in Time of Payment
• Alteration of Place of Payment
• Alteration in interest rate or any change in its favor, if any
• Tearing of the material part of the instrument
• Insertion of the place of payment where the bill is generally accepted
• Addition of a New Party to the instrument.
• Adding words to a blank endorsed bill of exchange so as to convert it into a special
endorsement.
For Example: – ‘A’ drew a cheque of Rs. 500 in favor of ‘B’, who changed the figure of
500 to 5,000 without the consent of the manufacturer. The cheque appears to have
been pulled from above for Rs. 5,000. On presenting the check for payment, the paying
banker paid Rs. 5,000 to ‘B’. The banker did so in accordance with the express term of
the instrument and in good faith. In this case, since the banker acted honestly and
without negligence, he is entitled to debit ‘A’ with Rs 5,000.
 Meaning
• The act of a person who is a holder of a negotiable instrument in signing his or her name
on the back of that instrument, thereby transferring title or ownership from one person to
another is an endorsement.
• An endorsement may be in favour of another individual or legal entity. An endorsement
provides a transfer of the property to that other individual or legal entity.
• The person to whom the instrument is endorsed is called the endorsee. The person making
the endorsement is the endorser. Let us discuss the Endorsement of Instruments here in
detail.
• Sec 15 of the Negotiable instrument Act, 1881, defines endorsement as “when the maker
or 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,
or so signs for the same purpose a stamped paper intended to be completed as a
negotiable instrument, he is said to endorse the same, and is called the “endorsement”.
 Essentials of Endorsement
1. Endorsement must be on the instrument itself. If no space is left on the instrument, it
must be on a separate slip of paper and entered to the instrument.
2. It must be made by the maker or holder of the instrument. A strange cannot endorse it.
3. Endorsement may be made by the Endorser either by merely signing his name on the
instrument or by specifying his name on the instrument or by specifying in-addition to
his signature on the person to whom on to whose order the instrument is payable. No
particular form of words is necessary for the endorsement.
4. Endorsement must be completed by the delivery of possession of the instrument. The
delivery of possession of the instrument with intention of passing the property to
endorsee is important. It is worth mentioning that the delivery of possession must be
made by the endorser himself or by someone on his behalf.
5. Endorsement must contain an order to pay. In need not contain any complementary
prefixes and suffixes.
 Types of Endorsement

1. Blank / general Endorsement : An endorsement is said to be blank or general

when the endorser puts his signature only on the instrument and does not write
the name of anyone to whom or to whose order the payment is to be made.
• We can convert a blank endorsement into an endorsement in full. We can do so by
writing above the endorser’s signature, a direction to pay the instrument to
another person or his order.
2. Special or Full Endorsement: An endorsement “in full” or a special endorsement
is one where the endorser puts his signature on the instrument as well as writes the
name of a person to whom order the payment is to be made.
A bill made payable to Ram or order, and endorsed “pay to the order of Shyam”
would be specially endorsed and Shyam endorses it further.
3. Conditional or Qualified Endorsement : A type of endorsement where the
endorsee limits or negatives his liability by putting some condition in the
instrument is called a conditional endorsement. Depends on happening of an
uncertain event.
The endorsee can receive the amt. only on the fulfillment of the condition or
events. Eg: pay Mr.Z, if he returns to B’lore.
4. A restrictive endorsement : is one which either by express words restricts or
prohibits the further negotiation of a bill or which expresses that it is not a complete
and unconditional transfer of the instrument but is a mere authority to the endorsee
to deal with bill as directed by such endorsement.
Restrictive endorsement

• An endorsement restricting
further transfer of a check’s
ownership is called a
restrictive endorsement.
5. Sans frais endorsement or sans recourse: Sans Recourse which means without
recourse or reference.As such a when the property in a negotiable instrument is
transferred sans recourse, the endorser, negatives his liability and excludes himself
from responsibility to all subsequent endorsees.
If the instruments dishonoured then Mr. B take an action directly on Mr. X . Because
Mr. A excludes his liability.
Without recourse means endorsing a check and adding "without recourse" to the
signature means that the endorser takes no responsibility if the check bounces for
insufficient funds.
6. Faculative endorsement
• Faculatative Endorsement is an endorsement where the endorser waives some
right to which he is entitled. For example, the endorsee is liable to give notice of
dishonor to the endorser and normally failure to give notice will absolve (declare
free from) the endorser from his liability.
7. Forged endorsement
• Forged endorsement is one in which signature of any of the party is fake which
makes the instrument invalid.
• Forgery conveys no title. But where the instrument is a bearer instrument or has
been endorsed in blank, it can be negotiated by mere delivery, and the holder
derives his title independent of the forged endorsement. Also, he can claim the
amount from any of the parties to the instrument.
• For example, a bill is endorsed, “Pay A or order”. A endorses it in the blank, and it
comes into the hands of B, who simply delivers it to C. C forges B’s endorsement
and transfer it to D.
• Here, D, as the holder does not derive his title through the forged endorsement of
B, but through the genuine endorsement of A. Thus, he can claim payment from
any of the parties in spite of the intervening forged endorsement.
8. Partial endorsement
• If an endorsement is made for the part of the amount of the instrument, it is called
“partial endorsement”. But such endorsement is not valid.
• A partial endorsement is a type of endorsement in which endorser purports
(appears to be) to transfer to the endorsee only a part of the amount payable on
the instrument. Such an endorsement does not operate as a negotiation of the
instrument.
Example: Mr. Mohan holds a bill for Rs. 5,000 and endorses it as “Pay Sohan or order
Rs. 2500”. The endorsement is partial and invalid.
 Rules for Endorsement
a) The endorsement must be written on the instrument and itself or on a slip of paper annexed
thereto.
b) It must be made by the holder of the instrument and not by a stranger.
c) It must be signed by the endorser. The endorser must sign his name in the same spellings as
mentioned on the face of the cheque.
d) An endorsement written on a slip of paper attached to the end of a document is deemed to
be written on the instrument itself.
e) The endorser should endorse the instrument in full and not in part.
f) If an instrument is payable to the order or two or more payees or endorsees who are not
partners, all must endorse unless the one endorsing has authority to endorse for all others.
g) Endorsement is complete only when the instrument is delivered. The delivery must be made
by the endorser himself. If the delivery is conditional, endorsement is not complete until the
condition is fulfilled.