What is a Qualified endorsement?

A qualified endorsement is a type of endorsement that includes specific conditions or limitations on the liability of the endorser. Unlike a full endorsement, which transfers all rights and responsibilities, a qualified endorsement may state that the endorser is not liable for certain aspects of the transaction. This type of endorsement is often used in financial instruments, such as checks or promissory notes, to clarify the extent of the endorser's obligations.