Mere signature of the payee on the reverse of the instrument is called ___________endorsement.
Mere signature of the payee on the reverse of the instrument is called Blank endorsement.
A blank endorsement is a type of endorsement in which the payee signs their name on the back of the cheque or other negotiable instrument, without specifying a particular payee or transferring the instrument to a specific person.
A blank endorsement effectively transforms the instrument into a bearer instrument, meaning that it can be redeemed by anyone who has physical possession of the instrument, rather than being restricted to a particular payee or endorsee.
As a result, blank endorsements are generally not recommended, as they increase the risk of the instrument being lost or stolen, and they provide less protection for the payee than other types of endorsements.