What Is Endorsement/Indorsement?


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Sachin P answered
The word endorsement has several utilities and thus the specific meaning depends upon the applicability. The general meaning of endorsement is supporting anything by means of attaching some annexure or giving statements or signatures just to authenticate the matter. There may be political endorsement, endorsement test at the court, testimonial endorsements, Govt. Officers endorsement on documents (driving license etc.), endorsement at the back of a check for certifying the depositing, etc.

Indorsement, on the other hand, is a signature made on any negotiable instrument of financial transaction, which is nothing but a specific type of contract details in order to make payment of money in an unconditional and negotiating way. Such signatures are to be made with an intention of receiving payment of the instrument or for transferring the rights to the said instrument. For example, signature made on a check with the intention as specified is an indorsement. Indorsement allows persons other than the original obligor to become a party to a negotiable instrument. There are various types of indorsement, such as a special indorsement meaning transferring money to a particular person; indorsement in blank refers to transferring the money to a bearer without any specific instruction; and the restrictive indorsement tells to transfer fund in some specific manner ("for deposit only", etc.).

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