Section 31: Requisites of a valid indorsement

31. Requisites of a valid indorsement An indorsement in order to operate as a negotiation shall comply with the following conditions— (a) (i) it shall be written on the bill itself and be signed by the indorser; (ii) the simple signature of the indorser on the bill, without additional words is sufficient; (iii) an indorsement written on an allonge, or on a copy of a bill issued or negotiated in a country where copies are recognised, is deemed to be written on the bill itself; (b) (i) it shall be an indorsement of the entire bill; (ii) an indorsement which purports to transfer to the indorsee a part only of the amount payable, or which purports to transfer the bill to 2 or more indorsees severally does not operate as a negotiation of the bill; (c) where a bill is payable to the order of 2 or more payees or indorsees who are not partners, all shall indorse, unless the one indorsing has authority to indorse for the others; (d) where, in a bill payable to order, the payee or indorsee is wrongly designated, or his name is misspelt, he may indorse the bill as therein described, adding, if he thinks fit, his proper signature; (e) where there are 2 or more indorsements on a bill, each indorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved; (f) an indorsement may be made in blank or special, and may contain certain terms making it restrictive.