Section 14 - Negotiation, Section 15 - Endorsement : Negotiable
Instruments Act 1881
What is Negotiation? What is Endorsement? Negotiation and
Endorsement are defined under Section 14 and 15 of
Negotiable Instruments Act 1881
Section 14 of Negotiable Instruments Act 1881: "Negotiation"
When a promissory note, bill of exchange or
cheque is transferred to any person, so as to
constitute the person the holder thereof, the
instrument is said to be negotiated.
Section 15 of Negotiable Instruments Act 1881:
When the maker or holder of a negotiable instrument signs the
same, otherwise than as such maker, for the purpose of
negotiation on the back or face thereof or on a slip of paper
annexed thereto, or so signs for the same purpose a stamped
paper intended to be completed as a negotiable instrument, he is
said to endorse the same, and is called the "endorser".