Concept and Meaning of the Allonge
Die Allonge (from French “allonger” = to extend) plays an important role in legal transactions, particularly in promissory note and cheque law as well as in other documentary and contractual relationships. An allonge refers to a separate paper addendum, firmly attached to a document, which is used to provide additional space for signatures, endorsements, or other remarks on the original document. The function of the allonge arises from the necessity of adding further legal declarations to a document if there is not enough space on the original.
Legal Bases of the Allonge under German Law
Statutory Provisions
The legal basis for the use of the allonge is found in particular in the German Bill of Exchange Act (Wechselgesetz, WG) and the Cheque Act (Scheckgesetz, SchG). In addition, the allonge is also recognized in other areas of civil law, for example in land register law or in documents where additions cannot be made directly to the original document.
Bill of Exchange Act (WG)
According to Section 11 (1) WG, allonges are permitted in the event of insufficient space for the endorsement (transfer note) or other remarks. The provision specifies:“If there is no more space on the bill itself for endorsements or other remarks, they shall be made on an allonge attached to the bill.”
Cheque Act (SchG)
A corresponding regulation is contained in Section 5 SchG for the cheque:“If there is not enough space on the cheque for endorsements or other remarks, they shall be written on an allonge.”
Requirements for Attachment to the Document
The legal effectiveness of declarations on an allonge requires that the allonge is so firmly attached to the principal document that it is regarded as part of the document. In practice, this is achieved by firmly gluing, stapling or otherwise attaching it in such a way that separation without damage is prevented. A loosely enclosed or insufficiently attached sheet does not fulfill this purpose and will not be recognized as an allonge in law.
Functions and Areas of Application of the Allonge
Law on Bills of Exchange and Cheques
In the law on bills of exchange and cheques, the allonge serves in particular to record endorsement declarations (indorsements) as well as guarantee notes or other subsequent additions for which there is no space left on the security itself. Since endorsements allow the transfer of order papers, the allonge is a central means for continuing the negotiability of these papers.
Other Uses
Real Estate and Land Register Law
An allonge can also be used for immovable property, for example in the case of mortgage, land charge or deed certificates, when the space for notes and entries is exhausted. The requirement for a firm connection to the original document also applies here.
Civil Law Documents
In the area of private contracts and documents, an allonge can be used to add further parties with their signatures or to supplement clauses and annexes. Here too, the principle of a firm, inseparable attachment applies.
Formal Requirements and Specifications
Material Requirements
- Firm Attachment: The allonge must be attached to the document in such a way that it appears to be virtually inseparable from it.
- Clear Assignment: Assignment to the principal document must be unquestionably established in order to preclude manipulation or confusion.
Formal Requirements
- Signatures: Endorsements, indorsements, or other legal declarations on the allonge generally require the handwritten signature of the respective party, provided the law requires written form.
- Consecutive Pages: Especially when there are several allonges, numerical and sequential order must be observed to ensure the coherent unity of content.
Legal Effects and Significance
Validity of Declarations Made on an Allonge
Declarations made on a properly attached allonge, especially endorsements and notations, have the same effect as if they were recorded directly on the original document. For legal purposes—such as the legitimation by endorsement or the transfer of the security—it makes no difference whether the declaration was made on the original document or the allonge.
Unacceptability of Separate Sheets
Loosely enclosed or only loosely stored sheets are not legally recognized as an allonge, because they do not meet the requirements of firm attachment and there is a risk of manipulation or confusion.
Evidentiary Function
In legal transactions, the allonge assumes the same evidentiary function and documentary character as the principal document, as long as it is firmly attached. It can therefore also have enforceable or dispositive effect, provided the underlying principal document confers such legal effects.
Distinction from Other Annexes and Enclosures
An allonge must be strictly distinguished from a mere annex, enclosure, or additional contractual components. The latter may be attached loosely, while an allonge is an essential part of a document, with direct influence on its legal relationship.
International Aspects
In numerous legal systems, the allonge is known and recognized as a means of supplementing documents and especially securities. Internationally uniform requirements exist in particular due to the Geneva Conventions on bills of exchange and cheques, as well as corresponding implementing acts in the respective states.
Summary
The allonge is an important means of supplementing documentary texts and, in particular, for the continuance of transfers of bills of exchange, cheques, and other documents in legal transactions. What is crucial is a firm, functional connection with the original document and compliance with statutory formal requirements. Only then do declarations on an allonge have full legal effect. Owing to its clarity and unambiguity, the allonge makes a significant contribution to legal certainty and the smooth execution of transactions involving securities and written contracts.
Frequently Asked Questions
When is an allonge required in legal transactions?
An allonge is necessary whenever there is no longer any space for further entries—especially endorsements—on the original security, particularly in the case of bills of exchange, cheques, or other documentary securities. In legal terms, the allonge functions as an extension of space without losing the connection to the original document. The need typically arises with multiple transfers of such documents, for example when a bill of exchange changes hands frequently (multiple endorsement chain). Under German law, the allonge must be firmly attached to the security, and mere enclosure is insufficient. In practice, it is particularly important that the allonge is attached in a legally secure manner and clearly refers to the associated document, otherwise the legal effectiveness of entries made on it may be questionable. Requirements for attachment vary in individual cases: permanent attachment, such as by gluing or stapling, is mandatory to exclude the risk of deception—for example, misuse by loose inserts.
What formal requirements apply to an allonge under German law?
Under German law, there are clear formal requirements for the allonge, which are essential to its validity. According to Section 14 of the Bill of Exchange Act (WG) and Section 22 of the Cheque Act (SchG), an allonge must be attached to the original document in such a way that it is perceived as a single document. Simple enclosure is not sufficient for this; the attachment must be firm, stable, and, in principle, lasting. Frequently, it is fixed to the original document by gluing, stapling, or sewing. In terms of content, the allonge must clearly and fully reproduce the required details—such as the endorsement in the case of a bill of exchange—and contain the necessary signatures of the parties involved. Formally deficient allonges—such as loosely inserted paper sheets—may, in certain circumstances, lead to the legal declarations recorded on them being regarded as invalid and thus impair the transferability or enforcement of the right evidenced.
What legal risks exist if an allonge is improperly attached?
An improperly attached allonge can have serious legal consequences. If the permanent and obvious attachment between the security and the allonge is missing, the rights holder risks losing legitimation from the security certificate. In such a case, there is a particular risk that endorsements or other declarations on the allonge will not be recognized by third parties, making a bona fide acquisition difficult or impossible. Furthermore, an inadequately fastened allonge can undermine the documentary character of the security, as the integrity and authenticity of the document are not assured. In the event of a dispute, this may result in refusal to enforce claims arising from the security, or may favor possible defenses by the debtor, who may claim formal deficiencies. For these reasons, the careful and proper attachment of an allonge is essential for legal certainty and evidentiary purposes.
May multiple different legal declarations be recorded on an allonge?
Yes, in principle, several different legal declarations may be recorded on an allonge, provided they relate to the respective security and its purpose. It is particularly common for several endorsements to be recorded in succession on an allonge when there is no space left on the original security. Other relevant notations, such as collection powers of attorney or guarantee declarations, can also be recorded on the allonge. However, it must always be ensured that each declaration complies with the formal requirements of the respective security and is clearly traceable to avoid disputes regarding attribution. For evidentiary reasons, it is also advisable to record each declaration chronologically and separately, including date and signature.
Who is responsible for the correct attachment and content of the allonge?
In a legal context, those persons who make the legal declaration, such as the endorsement, are generally responsible for the correct attachment and content of the allonge. They are obliged to ensure that the allonge is firmly attached to the security and that the details provided there are complete and correct. Especially in business transactions, e.g., at banks, this task is often carried out by the employees responsible for transfer processes. Errors in attachment or content can affect the validity of the declarations; this especially affects the person relying on them. Therefore, endorsing or otherwise declaring parties bear a significant legal risk and should pay particular attention to the correct and flawless preparation of the allonge.
What is the significance of an allonge in international legal transactions?
The legal significance and handling of an allonge can differ greatly in international legal transactions. While most Continental European countries, such as Germany, Austria, or France, have detailed legal provisions on the allonge, other legal systems, such as in the UK or the USA, are more flexible regarding its form, as long as the link to the original document is maintained. However, most international conventions on bills of exchange and cheques (e.g., the Geneva Convention) recognize the institution of the allonge and at least require a firm attachment of the supplementary sheet to the original document. When engaging in cross-border trade, it is always necessary to verify which national formal requirements must be observed, as otherwise the effectiveness of declarations—particularly when enforcement is sought in a foreign jurisdiction—may be jeopardized. International parties should therefore ensure compliance with both the respective national laws and the relevant international agreements.
