What is the term for a person who receives a negotiable instrument by endorsement?

The correct term for a person who receives a negotiable instrument by endorsement is 'endorsee.' An endorsee is the individual or entity to whom the negotiable instrument has been transferred through endorsement. This process entails the endorser—the party who originally holds the instrument—signing it over to the endorsee, thereby granting them the right to receive payment or other benefits associated with the instrument.

In the context of negotiable instruments, it is essential to distinguish between the roles. The endorser is the one who transfers the instrument, while the endorsee is the recipient of that transfer. This clear designation is crucial to understanding the flow of rights and responsibilities relating to financial documents like checks, promissory notes, or bills of exchange.