Qualified Endorsement Law and Legal Definition

Qualified Endorsement is an endorsement that passes title to a negotiable instrument with certain restrictions. For example, writing "without recourse" on the back of the check would create a qualified endorsement. It is the most frequently seen example, means that if the instrument is not honored, the endorser is not responsible. Where qualified endorsements are restrictive (such as "for deposit only") the term restricted endorsement is preferable.