Negotiable Instruments :
Section 13 :” A Negotiable Instrument Means a promissory Note, Bill of Exchange or Cheques Either To Order Or Bearer.”
Characteristics of Negotiable Instruments :
Easily Transferable From one Person to Another by mere Delivery in case of bearer instrument and delivery in case of order Instruments.
The Holder in due Course and possesses the right to sue upon instrument in his own Name.
Promissory Note :
Section 4 : “ A promissory note is an instrument in Writing, Containing an Unconditional Undertaking, signed by the Maker to pay a certain sum of money only to, or to the order of a certain Person or to the Instrument.”
Bill of Exchange :
Section 5 : “ A Bill of Exchange is an Instrument in writing containing an unconditional order signed by the maker, Directing a certain person to pay a certain Sum of Money Only to, or to the order of a certain Person or to the Instrument.”
Cheque :
Section 6 : “A Cheque is a bill of exchange Drawn on a Specified Banker and not Expressed to be otherwise than on Demand.” After 2002 Amendment, Cheque Include “ the Electronic Image of a truncated cheque and a in the electronic form.
Endorsement :
Definition of Endorsement :
When the maker or holder of negotiable instrument signs the same, otherwise than as maker, for the negotiation on the back or face thereof or on a slip of paper annexed thereto, or signs for the same purpose a stamp paper intended to be completed as a negotiable instrument, he is said to have endorsement the same and is called the endorser. Endorsement consists of the maker (or Drawer), Name of the Payee of negotiable instrument with the Intention of Negotiation.
Payable to Order or Bearer :
The instrument must be payable either to order or to bearer as per the provision of sec 13 of the Act.
For example : if a cheque is drawn with the expression “Pay to Manoj Kumar” it indicates that it can be paid to Manoj or any Person as per his order. But if it is written pay to “Manoj Kumar” Only it must be paid to Manoj kumar Only. A bill of exchange and cheque are payable to Bearer it is expressed to be so payable or if the last endorsement is an endorsement in blank.
related tags :
what is bill of exchange, what is cheque, what is promissary note, ni act1956.
Section 13 :” A Negotiable Instrument Means a promissory Note, Bill of Exchange or Cheques Either To Order Or Bearer.”
Characteristics of Negotiable Instruments :
Easily Transferable From one Person to Another by mere Delivery in case of bearer instrument and delivery in case of order Instruments.
The Holder in due Course and possesses the right to sue upon instrument in his own Name.
Promissory Note :
Section 4 : “ A promissory note is an instrument in Writing, Containing an Unconditional Undertaking, signed by the Maker to pay a certain sum of money only to, or to the order of a certain Person or to the Instrument.”
Bill of Exchange :
Section 5 : “ A Bill of Exchange is an Instrument in writing containing an unconditional order signed by the maker, Directing a certain person to pay a certain Sum of Money Only to, or to the order of a certain Person or to the Instrument.”
Cheque :
Section 6 : “A Cheque is a bill of exchange Drawn on a Specified Banker and not Expressed to be otherwise than on Demand.” After 2002 Amendment, Cheque Include “ the Electronic Image of a truncated cheque and a in the electronic form.
Endorsement :
Definition of Endorsement :
When the maker or holder of negotiable instrument signs the same, otherwise than as maker, for the negotiation on the back or face thereof or on a slip of paper annexed thereto, or signs for the same purpose a stamp paper intended to be completed as a negotiable instrument, he is said to have endorsement the same and is called the endorser. Endorsement consists of the maker (or Drawer), Name of the Payee of negotiable instrument with the Intention of Negotiation.
Payable to Order or Bearer :
The instrument must be payable either to order or to bearer as per the provision of sec 13 of the Act.
For example : if a cheque is drawn with the expression “Pay to Manoj Kumar” it indicates that it can be paid to Manoj or any Person as per his order. But if it is written pay to “Manoj Kumar” Only it must be paid to Manoj kumar Only. A bill of exchange and cheque are payable to Bearer it is expressed to be so payable or if the last endorsement is an endorsement in blank.
related tags :
what is bill of exchange, what is cheque, what is promissary note, ni act1956.
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