Section 32Part 2 — Bills of Exchange
Requisites of a valid indorsement
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An indorsement, in order to operate as a negotiation, must comply with the following conditions —
it must be written on the bill itself, and be signed by the indorser; the simple signature of the indorser on the bill, without additional words, is sufficient;
an indorsement written on an allonge, or on a copy of a bill issued or negotiated in a country where copies are recognised, is deemed to be written on the bill itself;
it must be an indorsement of the entire bill; a partial indorsement, that is to say, an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to two or more indorsees severally, does not operate as a negotiation of the bill;
where a bill is payable to the order of two or more payees or indorsees who are not partners, all must indorse, unless the one indorsing has authority to indorse for the others;
where, in a bill payable to order, the payee or indorsee is wrongly designated, or that payee’s or indorsee’s name is misspelt, that payee or indorsee may indorse the bill as therein described, adding, if that payee or indorsee thinks fit, that payee’s or indorsee’s proper signature;
where there are two or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved; and
an indorsement may be made in blank or special; it may also contain terms making it restrictive.
Defined Terms
indorsement in blankspecial indorsementrestrictive indorsement