Animo indorsandi refers to the intention behind endorsing a financial instrument, such as a bill or promissory note. When a person endorses a cheque or similar document with this intention, they accept responsibility for the amount stated in the document. This means that if the cheque is not honored, the endorser may be held liable for the payment to the subsequent holder or indorsee.
This term is primarily used in financial and commercial law. It is relevant in situations involving negotiable instruments, such as cheques, bills of exchange, and promissory notes. Understanding animo indorsandi is crucial for individuals and businesses that engage in transactions involving these documents, as it outlines the obligations of endorsers. Users can manage related legal forms through platforms like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
Example 1: A person endorses a cheque to a friend with the intention of transferring the right to cash it. If the cheque bounces, the endorser may be required to pay the amount to the friend.
Example 2: A business endorses a promissory note to a supplier, with the intention of guaranteeing payment. If the note is not honored, the business is liable for the amount stated in the note. (hypothetical example)
| Term | Definition | Difference |
|---|---|---|
| Indorsement | The act of signing a document to transfer rights. | Animo indorsandi specifically refers to the intention behind the indorsement. |
| Liability | Legal responsibility for something. | Animo indorsandi involves liability resulting from the endorsement of a financial instrument. |
If you find yourself in a situation involving an endorsement with animo indorsandi, consider the following steps:
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You accept liability for the amount if the cheque is not honored.