Class 11 Finance Important Chapter 15 Endorsement

Class 11 Finance Important Chapter 15 Endorsement Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Finance Important Solutions and select need one. AHSEC Class 11 Finance Additional Notes English Medium Download PDF. HS 1st Year Finance Important Solutions in English.

Class 11 Finance Important Chapter 15 Endorsement

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Banking Important Notes in English for All Chapters, You can practice these here.

Endorsement

Chapter: 15

IMPORTANT QUESTION AND ANSWER

Answer the Following Questions:

1. What is an endorsement?

Ans: Endorsement is signing a negotiable instrument to transfer rights or give payment instructions.

2. Who is entitled to endorse a negotiable instrument?

Ans: Only the holder or holder in due course can endorse; a stranger cannot.

3. What happens if an endorsement is partial?

Ans: Partial endorsement is invalid and cannot transfer part of the amount.

4. What is a restrictive endorsement?

Ans: An endorsement that prohibits further negotiation, usually by adding ‘only’ after the endorsee’s name.

5. What does ‘Sans Recourse’ endorsement mean?

Ans: It limits the endorser’s liability, indicating they do not guarantee payment beyond their endorsement.

6. Explain the essentials of a valid endorsement.

Ans: A valid endorsement must be made on the instrument or an attached slip, signed by the holder with the exact name, cover the full amount, and be completed with delivery of the instrument by the endorser.

7. Describe the significance of endorsement for the endorser and endorsee.

Ans: The endorser guarantees a good title and the genuineness of the instrument at the time of endorsement, transferring ownership and the right to further negotiate the instrument. The endorser also indemnifies the endorsee against losses due to dishonor.

8. What are the differences between general and special endorsements?

Ans: General endorsement is only a signature, converting the instrument into a bearer instrument. Special endorsement names a specific person to whom payment is to be made and requires endorsement and delivery for transfer.

9. Discuss the types of conditional endorsements with examples.

Ans: Conditional endorsements impose conditions on payment, such as “Pay to X on arrival of Y.” The endorsee can receive payment only when the stated condition is met.

10. Who can legally endorse a negotiable instrument, and what are the implications?

Ans: Holders, drawers, payees, or their authorized agents can endorse. Endorsers transfer ownership and may become liable to indemnify the endorsee if the instrument is dishonored.

Fill in the Blanks:

1. Endorsement must be signed by the ______ of the negotiable instrument.

Ans: Holder.

2. A ______ endorsement prohibits further negotiation of the instrument.

Ans: Restrictive.

3. Partial endorsement of a negotiable instrument is ______.

Ans: Invalid.

4. The delivery of the instrument by the endorser ______ the endorsement.

Ans: Completes.

5. An endorsement that limits the liability of the endorser is called ______ endorsement.

Ans: Sans Recourse.