What does simply signing your name on the back of a check classify as?

What does simply signing your name on the back of a check classify as?

• A. A special endorsement
• B. An endorsement in blank
• C. A conditional endorsement
• D. A non-negotiable endorsement

Answer: (B)

Signing your name on the back of a check is classified as an endorsement in blank. This type of endorsement allows the check to be negotiated by anyone who holds it, as it does not designate a specific payee. By simply signing the check, the endorser relinquishes their interest in it, allowing it to be further transferred without any restrictions. In contrast, a special endorsement specifically names an individual or entity to whom the check is to be paid, a conditional endorsement places a condition on the payment of the check, and a non-negotiable endorsement typically limits the transferability of the check. Thus, the act of just signing your name invokes a straightforward transaction, making it an endorsement in blank.

Signing your name on the back of a check is classified as an endorsement in blank. This type of endorsement allows the check to be negotiated by anyone who holds it, as it does not designate a specific payee. By simply signing the check, the endorser relinquishes their interest in it, allowing it to be further transferred without any restrictions.

In contrast, a special endorsement specifically names an individual or entity to whom the check is to be paid, a conditional endorsement places a condition on the payment of the check, and a non-negotiable endorsement typically limits the transferability of the check. Thus, the act of just signing your name invokes a straightforward transaction, making it an endorsement in blank.