This document discusses types of endorsements of negotiable instruments under the Negotiable Instruments Act of 1881. It defines a negotiable instrument as a written document containing a promise to pay a certain amount of money to the bearer. Common examples are checks, promissory notes, and bills of exchange. The document outlines five types of endorsements: blank endorsement, special or full endorsement, conditional endorsement, restrictive endorsement, and partial endorsement. It provides examples to illustrate each type of endorsement.

1. Negotiable Instruments Act
1881- Types Of Endorsements
Prepared By
Mounika Ramachandruni

2. Negotiable instrument
oA Negotiable Instrument is that document that
includes a ‘promise to pay’ a certain amount of money
to the bearer of the document.
oIt’s a mode of transferring a debt from one person to
another.
oNegotiable Instruments are always in written form.
oExamples of Negotiable instruments are- a cheque, a
promissory note, a bill of exchange.

3. Definition
o“Negotiable” means transferable by delivery and
“instrument” means a written document by
which a right is created in favor of some person.
Thus, negotiable instrument means a document
which is transferable by delivery.
oAccording to Section 13(i) of negotiable
instrument Act, 1881 a negotiable instrument
includes and means a promissory note, bill of
exchange or cheque.

4. Characteristics Of A Negotiable
Instrument
oFreely transferrable
oRecovery
oPresumption as to considerations
oHolder’s title free from all defects
oPresumption as to holder

5. Types Of Negotiable Instruments
Instruments Negotiable by Statute
The Negotiable Instruments Act mentions orgy three
kinds of negotiable instruments (Sec13). These are:
Promissory Notes, Bills of Exchange, Cheques.
Instruments Negotiable by Custom or Usage
There are certain other instruments which have occupied
the character of negotiability as a result of usage or
custom of trade.

6. For example
Exchequerbills Banknotes Share warrants
Circular notes
Bearer
debentures
Dividend
warrants
Share certificates
with blank
transfer deeds etc

7. Endorsement
o Endorsement means the signature of the maker/
drawer or a holder of a negotiable instrument, either
with or without any writing, for the purpose of
negotiation.
o The endorsement is done by the payee or endorsee,
as the case may be by signing on the instrument
customarily on its back & where the space is
insufficient on a slip of paper annexed thereto called
“allonge”.

8. Kinds Of Endorsement
1. Blank endorsement: If the endorser signs his name
only, the endorsement is said to be in blank and it
becomes payable to bearer e.g. MahbubulHaq.
2. Special or Full endorsement: An endorsement “in
full” or a special endorsement is one where the
endorser not only puts his signature on the instrument
but also writes the name of a person to whom or to
whose order the payment is to be made.

9. Kinds Of Endorsement
3. Conditional endorsement: In conditional endorsement the
endorser puts his signature under such a writing which makes
the transfer of title subject to fulfillment of some conditions of
the happening of some events
Example: Pay to Mr.SarwarJahan or order after his marriage-
Sd/Badrul Kamal.
4. Restrictive endorsement: An endorsement is called
restrictive when the endorser restricts or prohibits further
negotiation.
Example: “Pay to Miss. / A. Pereira only” Sd/HosneAra.

10. Kinds Of Endorsement
5. Partial endorsement:
In Partial endorsement only a part of the amount
of the bill is transferred or the amount of the bill is
transferred to two or more endorsees severally.
This does not separate as a negotiation of the
instrument. The law lays down that an
endorsement must relate to the whole
instrument.