Partial Endorsement in Commercial Paper: Reasons for Rejection and Justifications for Acceptance (Critical Study)

Abstract

This research paper strives to demonstrate how commercial paper trades through endorsement and for this trading to be correct and effective for its impact, the endorsement must meet the necessary objectives and formal conditions for that. One of the special objective conditions for endorsement is that it should be on the full immutable right in the commercial paper, but opinions have emerged from jurisprudence and the judiciary considered that partial endorsement is valid and effective to raise, so this study is done to elaborate the reasons for the endorsement invalidity in general and to study partial endorsement in specific, to find out the motives adhered to by jurisprudence to consider partial endorsement invalid, as well as provided a response by balancing between acceptance of endorsement and the reasons for rejection. In conclusion, the introduction of a new exception to the rules of endorsement will not be unusual.