7.4 Negotiation and Endorsement

Negotiation passes title: by delivery (bearer paper) or by endorsement and delivery (order paper). Endorsements: blank (signature only — converts to bearer), full/special (names the endorsee), restrictive (prohibits further negotiation), and sans recours (excludes the endorser's liability). A forged endorsement breaks the chain of title — the true owner's name cannot be signed away by a forger; the loss falls where the forgery was accepted (the collecting bank's classic exposure).