Paralegal Advanced Competency Exam (PACE) Practice Exam

What is an endorsement in legal terms?

1. A summary of a legal case

2. A written statement on the back of a document

3. A declaration of bankruptcy

4. A type of legal bond

The correct answer is: A written statement on the back of a document

In legal terms, an endorsement refers to a written statement or instruction that is placed on the back of a document, typically a negotiable instrument such as a check or promissory note. This endorsement can serve various purposes, such as transferring rights or interests in the document to another party or providing a guarantee. When a party endorses a document, it signifies an intention to take responsibility for it, which may include payment or obligation under the terms of the original agreement. The other options do not accurately define an endorsement within the legal context. A summary of a legal case is typically called a brief, a declaration of bankruptcy refers to a formal statement filed with the court indicating that an individual or business cannot repay debts, and a legal bond is a contractual agreement that involves financial obligation or security, which is unrelated to the concept of endorsement in this sense.