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KembaraXtra – Legal Terms – Indorsement (Endorsement)
Indorsement refers to the act of signing a negotiable instrument, such as a bill of exchange or cheque, for the purpose of transferring rights under it to another person. The signature is usually placed on the back of the instrument.
Through indorsement, the indorser may transfer ownership, guarantee payment, or assume liability depending on the type of endorsement used. This mechanism plays a crucial role in commercial transactions involving negotiable instruments.
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