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Allonge – Definition

Allonge Definition

An allonge is the slip of paper fixed at the end of a document to give space for further endorsements.The word allonge is a French word, meaning “output”. Allonge is often fixed to the negotiable instrument.

A Little More on What is an Allonge

It forms a binding agreement between the parties, wherein one of the parties must pay a fixed amount to another party  either immediately or an agreed future date. The three categories of interested parties can be involved:

  1. The payer paying the defined invoice amount
  2. Cancellations
  3. Recipients

The banknotes may be transferred or exchanged among many parties. Hence, they are not a good option for billing. In such case, allonge is annexed to the bill, as a legal continuation of the document. To have approval for such cases, allonge is fixed to the financial instrument. The approver needs to sign a written statement to make the document valid.

Allonge Donor: A person guaranteeing the amount indicated on the invoice, by putting his signature. Allonge guarantees that the amount on the invoice will be paid or refunded. Allonge is usually specified as per the contract provided.

References for Allonge

Academic Research for Allonge

Bill of Exchange Law, Kotásek, J. Bill of Exchange Law.

Comparison between the Juridical Regime of the Debt Instruments: Bill of Exchange, Promissory Note and Cheque, Cristea, S. (2013). Acta Universitatis Danubius. Œconomica, 9(4). The bill of exchange, the cheque and the promissory note are the debt instruments regulated by the bill of exchange law.  The debt instruments are different from other instruments and are used in civil and commercial cases. Debt instruments are formal, literal and autonomous. The creation, existence,circulation, exercise and the use of the patrimonial rights included in the debt instruments are based on the instrument’s elements. The debt instruments’ existence and the coverage of the patrimonial rights are defined in the instrument

The Good Faith Purchase Idea and the Uniform Commercial Code: Confessions of a Repentant Draftsman, Gilmore, G. (1980). Ga. L. Rev., 15, 605.

Unification of the Law of Bills of Exchange, The, Byles, W. J. (1908). Unification of the Law of Bills of Exchange, The. In Int’l L. Ass’n Rep. Conf. (Vol. 25, p. 281).

Bills of Exchange, Cheques, Credit and Debit Cards, Judge, S. (1999). (pp. 450-476). Palgrave, London.  This chapter will give you information about the requirements of a bill of exchange and the difference between a bill of exchange and a cheque, the ways of negotiations for the bills of exchange and cheques, and the benefits for the holder in due course. You will also know the relationship between the banker and the customer,their rights and duties, the statutory protection of the paying as well as the collecting banker and the importance of the electronic funds transfer (EFT)

Bill as calculate-credit instrument: Code of turnover and participants, Goncharov, A. I. (2016). Legal Concept, 15(4), 72-79.

RECENT MODIFICATIONS TO THE DEBIT PAYMENT INSTRUMENT IN ROMANIA: A COMPARATIVE SYNOPTIC APPROACH, Adela, S., & Mihaela, T. I. (2008). Annals of the University of Oradea, Economic Science Series, 17(3).  This study highlights the actual and potential opportunities for debit payment instruments’ settlement in Romania. It defines a settlement system of the debit payment instruments since 1999 till present, by describing the compensation of the debit payment instruments via Transfond as well as the automatic process of the debit payment instruments. We also evaluated the technical ways of preparing the debit payment instruments, and presented two proposals for dealing with the debt instruments through truncation – the truncation at a source, and a flexible truncation approach.

Differences between the English and the German Law Relating to Negotiable Instruments, Crauford, W. G. (1957). International & Comparative Law Quarterly, 6(3), 418-441.

What Is an Allonge?, THW. (1916). Michigan Law Review, 485-488.

Negotiable Instruments-A Few Suggestions from Foreign Law, Murray, D. E. (1970). Com. LJ, 75, 113.

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