Endossement

Endorsement constitutes an essential instrument in Dutch commercial law for the transfer of negotiable instruments. By the signature of the endorser (the current holder) on the reverse of the document, the rights arising therefrom are transferred to the endorsee. This mechanism facilitates the rapid and straightforward circulation of commercial paper without the necessity of a formal assignment.

Endorsement is particularly relevant in respect of bills of exchange and cheques, as it enables the holder to employ the instrument as a means of payment or a financing tool. In practice, it frequently arises in international trade transactions, where banks and commercial parties endorse instruments to streamline payments or provide credit. An incomplete or defective endorsement may result in the rejection of payment or disputes concerning ownership of the instrument.

The statutory framework is set out in the Dutch Commercial Code and the Dutch Civil Code, under which the endorser remains in principle liable for payment unless he expressly releases himself from such liability.