Endorsement Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Endorsement, written in plain English, along with examples of how it is used.
What is Endorsement?
(indorsement)n. 1) the act of the owner or payee signing his/her name to the back of a check, bill of exchange or other negotiable instrument so as to make it payable to another or cashable by any person. An endorsement may be made after a specific direction (“pay to Dolly Madison” or “for deposit only”), called a qualified endorsement, or with no qualifying language, thereby making it payable to the holder, called a blank endorsement. There are also other forms of endorsement which may give credit or restrict the use of the check. 2) the act of pledging or committing support to a program, proposal or candidate.
History and Meaning of Endorsement
Endorsement is a term that has a long history, dating back to the banking and commerce industries of ancient civilizations. The act of endorsing a check or other negotiable instrument signifies an endorsement of the terms of the document, and can be made in several different ways, including blank endorsements, endorsements with a specific direction, and endorsements that give credit or restrict the use of the document. Endorsements can also be used to pledge or commit support to a program, proposal, or candidate.
Examples of Endorsement
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John Smith endorses his paycheck by signing the back of the check and making it payable to his landlord.
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The union endorses a particular candidate for office, pledging their support and resources to their campaign.
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A signed letter of endorsement from a prominent business leader can carry significant weight for a startup seeking investment.
Legal Terms Similar to Endorsement
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Assignment - the transfer of legal ownership of a property or asset from one party to another.
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Guaranty - a legal agreement in which one party agrees to be responsible for the debts or obligations of another party.
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Surety - a person or company that agrees to be responsible for the debt or obligation of another party if they fail to meet their obligations.