An endorsement in order to operate as a negotiation must comply with the following conditions, namely-

(a) It must be written on the bill itself and be signed by the endorser. The simple signature of the endorser on the bill, without additional words, is sufficient.

An endorsement written on an allonge, or on a "copy" of a bill issued or negotiated in a country where "copies" are recognised, is deemed to be written on the bill itself.

(b) It must be an endorsement of the entire bill. A partial endorsement, that is to say, an endorsement which purports to transfer to the endorsee a part only of the amount payable, or which purports to transfer the bill to two or more endorsees severally does not operate as a negotiation of the bill.

(c) Where a bill is payable to the order of two or more payees or endorsees who are not partners, all must endorse, unless the one endorsing has authority to endorse for the others.

(d) Where, in a bill payable to order, the payee or endorsee is wrongly designated or his name is mis-spelt, he may endorse the bill as therein described, adding, if he thinks fit, his proper signature.

(e) Where there are two or more endorsements on a bill each endorsement is deemed to have been made in the order in which it appears on the bill, until the contrary is proved.