CA Foundation · Business Laws · The Negotiable Instruments Act, 1881
A bill of exchange is payable to 'Anita Sharma or order'. Anita writes only her signature on the back of the bill and hands it to Bhavesh. What kind of endorsement has she made?
Anita has made an endorsement in blank. She only signed the back of the bill without naming any endorsee. Because no person is specified, the bill becomes payable to the bearer in effect and can pass further by simple delivery.
- AEndorsement in blankCorrect
- BRestrictive endorsement
- CConditional endorsement
- DPartial endorsement
Explanation
An endorsement made by signature alone, with no named endorsee, is an endorsement in blank (general endorsement). It converts the bill into one transferable by delivery. A restrictive endorsement would limit further negotiation, and a conditional one would depend on an event, and neither is present here.
Did you get it right without looking?
One question tells you little. A timed set on The Negotiable Instruments Act, 1881 shows your real accuracy, how long you take and where you lose marks.
More The Negotiable Instruments Act, 1881 questions
- Ramesh holds a bearer cheque for Rs 20,000 drawn by Sheela. He hands it over to Tanmay in payment of a debt, without signing or writing anyt…
- Imran's cheque for Rs 1,50,000 in favour of Joseph was dishonoured for insufficient funds. Joseph sent a valid notice, and Imran did not pay…
- Deepak's cheque for Rs 80,000 to Farida is returned by the bank with the memo 'funds insufficient'. Farida wants to start action under Secti…
- Karan gives a promissory note for Rs 90,000 to Leela, payable on demand. Leela endorses it to Mohan, who presents it to Karan, but Karan ref…
- Tara Exports, Chennai, receives a bill of exchange drawn by Sundar on Tara for Rs 90,000 payable 'to Sundar or order' three months after dat…
- Anita Sharma, a trader in Pune, signs a written promise: 'I promise to pay Ravi Kulkarni or order Rs 50,000 on demand.' Anita is the person …