Explain four types of endorsement that may be made on a bill of exchange

Blank endorsement
This is an endorsement which does not specify the person to whom or to whose order the
bill is payable. It‟s effect is to convert the order bill into a bearer bill.
• Special endorsement
This is an endorsement which specifies the person to whom or to whose order, the bill is payable.
• Restrictive endorsement
This is an endorsement which prohibits further negotiation of the bill e.g a bill endorsed “pay x only”. This gives the right to the endorse to claim payment on the bill but prohibits him from transferring the right of payment to anyone else.
• Conditional endorsement
This is an endorsement which the endorser makes the payment of the bill subject to a condition or conditions or limits or exempts himself from liability if the bill is not honoured.



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