Question 15 of 24
Q.When there is no space in Negotiable Instrument for making further endorsement, how can it be endorsed?
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020Subjective· 3mImportance★★★★★
63% · 15/24 Questions
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Start your 14-day free trial to unlock the full solution →When no space is left, a slip of paper called an 'allonge' is attached and further endorsements are made on it.
Each time a negotiable instrument is transferred, an endorsement is written on its back. After many transfers the space on the instrument may be fully used up, leaving no room for the next endorsement. The recognised solution is:
- A separate piece of paper is attached (firmly affixed) to the negotiable instrument.
- This attached slip is called an 'allonge'.
- All further endorsements are made on the allonge, and it is treated as part of the original instrument. …
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