What term is used for a person who signs on the back of an instrument?

The term that indicates a person who signs on the back of an instrument, typically in the context of negotiable instruments like checks, is known as an endorser. When this person adds their signature, they are effectively transferring their rights to the instrument to another party. This act of endorsement often includes the intention to facilitate the transfer of ownership or rights related to the instrument.

In financial or legal contexts, the endorser plays a crucial role in the negotiation process, as this endorsement can be necessary for the holder of the instrument to claim the payment or rights associated with it. The endorser may also include instructions or limitations regarding the endorsement, reflecting their intent or conditions for the transfer.

Understanding the function of an endorser is vital, especially in scenarios involving checks, promissory notes, or similar financial documents, where the smooth transfer of financial responsibility and rights is essential for business and legal transactions.