Legal Definitions - endorsement (indorsement)

The term endorsement refers to two primary concepts:

• First, it means giving public support, approval, or recommendation to a person, product, service, or idea. This often implies a statement or action that encourages others to also support or use something.

• Second, in a more specific legal and financial context, an endorsement is the act of signing a document, often on the back, to transfer rights, ownership, or to validate a transaction. This signature legally authorizes the transfer or confirms agreement to the terms.

Here are some examples to illustrate these meanings:

• Imagine a well-known chef appearing in a television commercial to promote a new brand of kitchen appliances. This is an endorsement because the chef is publicly lending their credibility and support to the product, encouraging viewers to purchase it.

• When you receive a check made out to you, you typically need to sign your name on the back before you can deposit it into your bank account or cash it. This signature is an endorsement that legally authorizes your bank to process the check and transfer the funds to you.

• If you sell your car to another individual, you will need to sign a specific section on the back of the vehicle's certificate of title. This signature acts as an endorsement, legally transferring ownership of the car from you to the buyer.