Kinds of endorsements

I. The endorsement in blank or general endorsement:

It is a type of endorsement when the endorser just signs on the instrument
without mentioning the name of the person in whose favour the endorsement is
made. Endorsement in blank specifies no endorsee. It simply consists of the
signature of the endorser on the endorsement.
2. The endorsement in Full or Special endorsement :
In this type of endorsement contains not only the signature of the endorser but
also the name of the person in whose favour the endorsement is made, then it is
an endorsement in full.
3.Restrictive endorsement
A restrictive endorsement in which the endorser restricts the further negotiation of the
instrument . The endorsee cannot further endorse such instrument .
4.Conditional or Qualifies endorsement
Where the endorser of a negotiable instrument specifies a condition on the endorsement,
it is called a conditional endorsement. It may either limit the liability of the endorser or
creates some liability to the endorsee to receive the payment of the instrument .
5.Sans Recourse Endorsement:
It is an instrument limits the liability of the endorser. Generally an endorser is liable to
the subsequent endorsees if the instrument is dishonored . But in the case of sans
recourse endorsement , the endorser free from such liability by writing the words ‘sans
recourse’ or ‘without recourse to me’.
Sans Frais Endorsement :
Sans Frais Endorsement states that the endorser doesn’t want to bear any further
expenses other than the liability of the instrument. Sans Frais means without
expense.
Facultative Endorsement :
Generally the endorser of an instrument is entitled to receive a notice of
dishonour from the holder in case of dishonour of the instrument , if he is to be
held liable for the instrument .
 Marking of cheques
 Marking of cheque is a sort of certification given to the cheque by paying
banker.
 Marking is done by the drawee bank by stamping across the cheque “Good
for payment “.
 It is an additional guarantee given by the drawee bank
 Drawee bank undertakes the obligation to pay the cheque
 Marking of cheque can be done :
 at the request of the drawer
 at the request of the payee or any holder
 at the request of another banker
 Cancellation of Marking : The certifying banker can cancel the marking of
cheque at anytime, before the cheque is delivered by the drawer to the payee