Multiple choice

Which among the following is a false statement?

  1. Signature of the payee or endorsee for negotiation of the cheque is called endorsement.

  2. Endorsement can be only on the note itself.

  3. A cheque can be endorsed for any number of times

  4. Endorsement is possible on bill of exchange, promissory note and cheque.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The endorsements of the note need not be on the note itself. A note is also endorsed if a separate sheet of paper containing the signature and any words of endorsement is attached to the note, called an allonge.

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