General indorsement refers to the act of signing the back of a negotiable instrument, such as a check, without specifying a particular recipient. This allows anyone in possession of the instrument to exchange it for money. It is important to note that there are various types of indorsements, each with its own set of rules. Some indorsements restrict the individuals who can negotiate the instrument, while others limit the liability of the signer if the instrument cannot be traded.
When a signature is placed on the back of a negotiable instrument, such as a check, to transfer or guarantee the instrument or to acknowledge payment, it is known as a general endorsement. The term can also refer to the signature or notation itself. For instance, if an individual signs the back of a check without specifying a particular payee, it becomes a blank endorsement or a general endorsement. This renders the check payable to the bearer and negotiable only by delivery. Another example is a qualified endorsement, which limits the liability of the endorser if the instrument is dishonoured. This is accomplished by writing “without recourse” or “sans recourse” over the signature. In summary, a general endorsement is a means of transferring or guaranteeing a negotiable instrument through a signature on the back.
A general indorsement is a signature on the back of a negotiable instrument, such as a check or promissory note, that transfers ownership of the instrument to another party.
Yes, anyone who is the legal holder of a negotiable instrument can make a general indorsement to transfer ownership to another party.
Yes, a general indorsement is legally binding and transfers ownership of the negotiable instrument to the indorsee.
Generally, a general indorsement must be made on the back of the instrument, contain the signature of the indorser, and clearly identify the indorsee.
Once a general indorsement is made, it cannot be revoked unless the indorsee agrees to release the indorser from liability.
If a general indorsement is forged, the party whose signature was forged may not be liable for any subsequent transactions involving the negotiable instrument.
Yes, a general indorsement can be made in blank, where the indorser simply signs their name without specifying an indorsee. This allows the instrument to be transferred to anyone who possesses it.
Yes, a general indorsement can be restricted by adding specific conditions or instructions for the indorsee. However, this may limit the negotiability of the instrument.
A general indorsement transfers ownership of the negotiable instrument to the indorsee without specifying a particular person, while a special indorsement specifically designates the person to whom the instrument is transferred.
Yes, in many jurisdictions, a general indorsement can be made electronically, such as through digital signatures or electronic endorsements, as long as it meets the legal requirements for validity.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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