Endorsement is the act of transfer ownership of something or a title that initially belongs to a certain individual to another person.
Typically, an endorsement is a statement made on the back of a credit title (endorsed check, for example) ensuring that only the endorsee is the beneficiary of the credit guarantee.
In the case of checks, for the endorsement to be valid, the endorser only needs to make a signature on the back of the title, attributing the endorsee's name. That way, the individual who receives the check can cash it.
From the point of view of Brazilian law, endorsement is seen as an autonomous, solidary and unilateral act. In this way, one person is able to transfer the rights to a title or property so that another can enjoy it.
For cancel an endorsement, according to the effects of the law, the endorser suffices to scratch his/her signature on the title or document, thus extinguishing the validity of the endorsement.
See also the meaning of Check.
Endorsement types
- Endorsement in black: when the endorsee's name is specified in the title. This modality guarantees greater security to the title, since only the person with the identity mentioned in it can enjoy its right.
- Blank endorsement: there is no identification of the endorsee's name. In this case, whoever takes possession of the title performs the function of endorser. Typically, the endorser marks the back of the check, for example, the order "to the bearer".
- Simple or translational endorsement: when the endorsee becomes owner of the title and creditor.
- Endorsement mandate (Power of attorney): when the endorsee acts on behalf of the endorser. However, in this case, the endorsee does not own the title, acting only on behalf of the endorser.
- Posthumous endorsement: carried out after the end of the "useful life" of the security.
- Escrow Endorsement: when the endorsement is made with the purpose of guaranteeing the payment of a debt by the endorsee.