What Is a Blank Endorsement?

Blank endorsement is a means of signing a note when the beneficiary or holder of the note transfers the note. Because it is usually signed on the back of the bill, it is said to be endorsed. For an endorsed instrument, the endorser is responsible for the payment due by the payer of the secured instrument. If the payer fails to pay, the endorser shall be liable for payment. A note can be endorsed and transferred many times. It is called bill circulation. Endorsements are divided into "blank endorsement", "special endorsement" and "restricted endorsement". A blank endorsement means that the endorser only signs the note and does not specify the recipient's name. ^[1]

Blank endorsement

Blank endorsement exists in

To order

In the business of import and export trade in China, our exporters generally use to order, that is, the consignee column of the bill of lading does not indicate the consignee, but only the to order. Such bills of lading require blank endorsement, that is, the consignor

A blank endorsement is an endorsement that does not record the name of the endorser, but only the signature of the endorser. The main feature of blank endorsement is that it does not record the name of the endorsed person. However, this endorsement has other characteristics:

(1) By simple delivery

The main reason for the blank endorsement is a method used by trade middlemen to avoid direct contact between manufacturers and buyers. Since the middleman is not a direct buyer of the goods, in order to transfer the right of the goods to the real buyer, the middleman requires the manufacturer to write the column of the document consignee as "to order (by instruction)" instead of the name of the real buyer . In this way, when the middlemen receive the documents, they can transfer the documents to the buyers through blank endorsements, that is, the rights of the goods to the buyers. This way, the middlemen can not only make their own difference, but also ensure that the manufacturers and buyers can avoid direct purchases. Contact and leave aside the middlemen.