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      Question

      An indorsement in which the indorser signs his name

      only, without adding any direction, is called an indorsement:
      A In full Correct Answer Incorrect Answer
      B Conditional Correct Answer Incorrect Answer
      C Restrictive Correct Answer Incorrect Answer
      D In blank Correct Answer Incorrect Answer
      E Sans recourse Correct Answer Incorrect Answer

      Solution

      Under Section 16, if the indorser signs his name only, the indorsement is said to be 'in blank'. If he adds a direction to pay the amount to, or to the order of, a specified person, it is an indorsement 'in full', and the specified person is the 'indorsee'. Under Section 54, an instrument indorsed in blank becomes payable to bearer even though originally payable to order, subject to provisions on crossed cheques.

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