Q.If the payee is an illiterate, how can he endorse a negotiable instrument?

Endorsement (Section 15) is the signing of a negotiable instrument, on its back or face, or on an attached slip (an allonge), for the purpose of transferring (negotiating) it. Signing alone does not finish the job — delivery of the instrument to the endorsee is also essential before the negotiation is complete, and an instrument can keep being negotiated by further endorsements until it is finally paid or satisfied at or after maturity.

Different kinds of endorsement produce very different legal effects. A blank/general endorsement (signature only) turns the instrument into a bearer instrument. A full/special endorsement names the specific endorsee, so only that person (or their own further endorsee) can claim payment. A restrictive endorsement limits how far the instrument can be negotiated onward, or confines the endorsee's authority to a specific purpose such as collection. A conditional or qualified en …