endossee

Endossee is a term used in the law of negotiable instruments to describe the person who is named to receive the rights under an endorsement. The person who signs the instrument transferring rights is the endorser. Although endorsee is the standard spelling, endossee appears in some texts as a variant.

Endorsements can be special—made to a named endorsee—or blank, which transfers ownership to the bearer. They may also be restrictive, such as “for deposit only” or “pay to the order of X.” By endorsing an instrument, the endorser transfers its rights to the endossee, who then has the right to collect payment from the maker or drawee and may transfer the rights further by endorsing again.

The endorsee's legal rights depend on the instrument and how it was negotiated. Generally, an endorsee who takes the instrument in due course acquires rights free of many defenses that could be raised by prior parties. The endorsee can sue on the instrument if payment is not made. If the instrument is endorsed repeatedly, each subsequent endorsee steps into the shoes of the prior holder. An endorser remains liable unless discharged or released.

Terminology varies by jurisdiction. In U.S. contract and commercial law, the Uniform Commercial Code governs negotiable instruments and defines endorsee alongside endorser and holder. In everyday usage, “endorsee” is more common, while “endossee” is rarely used and may reflect misspelling or variant spelling.