The term endorsement it can have several connotations, depending on the context in which it is used. A signature, for example, is an endorsement by authorizing it in the legal transfer of some negotiable instrument between two parties, a review in a insurance policy contract or a driver's license, even a public affirmation of support for a company, person or product is also considered a endorsement.
In this article you will find:
What is an endorsement?
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It is the act of partially or totally assigning a property or power over a specific document, applied to a title of value of a property or a credit, in simpler words, theendorsement it is a transfer from one person to another of the power transferred by a document.
Understanding then that it consists of the process by which one person transfers power to another to carry out acts of domain in his name, or transfer of ownership of a document concrete.
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Act that takes place when the endorser stamps his signature on the back of the document.
What is the endorsement for?
It is used to put into circulation any credit and payment instrument, such as a security, promissory notes, checks, bills of exchange, invoices, etc.
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The endorsement also serves so that the creditor or current holder of a credit document, bill of exchange or other, yields to another person their expedited rights, in this way there is evidence or endorsement of the order to be paid to that new person.
The pay:
It serves as a form of fulfillment of an obligation by a debtor, that is, in the fulfillment of a monetary obligation or the provision of a certain sum of money.
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The presentation:
The presentation of the document with endorsement is mandatory, whether or not it contains provisions without protest or notice. Said presentation can be made through the collectors or agent, at the time of its expiration or within a couple of business days following the expiration.
Endorsement types
There are different types of endorsement, among these you can find:
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Property endorsement:
It transmits absolute power over a document, that is, it becomes the property of the endorsee, who acquires all rights and obligations over the document.
Endorsement in pursuit:
It does not transfer ownership of the document, the endorsee only obtains the power to present or collect said document.
Guarantee endorsement:
Transfer the power of a document as a deposit.
Endorsement in trust:
It transfers the fiduciary power of the title in favor of the heir, to whom the exercise of the derived rights corresponding to the endorser corresponds.
In these cases, the endorsee can only be the person authorized by law.
Other types of endorsement also applied are:
Signature endorsements:
It is applied when signing a check or authorization to transfer money to a certain account, which works as proof of the intention of the payer.
Insurance endorsement:
It applies in the amendments, additions or modifications to the original policy, for the increase of the policy premium and additional benefits for the holder and beneficiaries.
License endorsement:
Applies to grant additional privileges to the holder of the license.
Endorsement features
- It serves as an instrument of legitimation of a document.
- The endorsement of a document cannot be conditional.
- It should be written on the document, in most cases on the back.
- It must contain the signature of the endorser.
- Sometimes, in the case of an agent, the expression "for" is used.
- The name of the beneficiary is added or omitted, as the parties prefer.
- It has the power to extend the responsibility for payment or acceptance and also to prohibit new endorsements on the document.
- Exempt from filing claims.
- It has a solemn character.
- The transfer of the endorsed document is consensual.
Conclution
Finally, it is worth making a simple summary of what the endorsement, seeing it as the unilateral recognition of a document with its own effects and independent of the underlying contract. Consequently, all the natural rights and obligations of the assignment are derived from a contract.
The endorsement must be on the document, the bill of exchange on the back or on an additional sheet, drafting the assignment as a separate document attached to the principal.
Refering to endorsement acceptance It is understood as the commitment assumed by the drawee to make a payment when presenting the document when it expires, it is also necessary to say that It can be partial, conditional or crossed out, in any of the cases it is necessary to raise a protest in order to record the circumstance of action. In the case of conditional acceptance, it is considered outright, however, it could be restricted to a part of the value of the document. Any other condition attributed by the acceptor would be void.
