![]() If there are more payees than one, all must endorse it.Unless the holder signs his endorsement on the instrument and delivers it, the transferee does not become a holder.Negotiation by endorsement and delivery (Section 48)- A promissory note, a cheque, or a bill of exchange payable to order can be negotiated only by endorsement and delivery.Example: A, the holder of a negotiable instrument payable to the bearer, delivers it to B’s agent to keep it for B.Negotiation by delivery (Section 47)- Where a promissory note or a bill of exchange or a cheque is payable to a bearer, it may be negotiated by delivery thereof.Negotiation may be effected in the following two ways:.Handing over a negotiable instrument to a servant for safe custody is not negotiation, there must be a transfer with an intention to pass title.The transfer must be made in such a manner as to constitute the transferee the holder of the instrument.There must be a transfer of the instrument to another person. ![]()
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