Negotiable Instruments-B.V.Raghunandan

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a brief study of promissory note, bill of exchange and cheque

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Negotiable Instruments-B.V.Raghunandan

  1. 1. Chapter 5- Negotiable Instruments
  2. 2. Negotiability <ul><li>Free Transferability </li></ul><ul><li>Good Title free from the defective title of transferor </li></ul><ul><li>Goodfaith </li></ul><ul><li>Obtained for Value </li></ul><ul><li>Holder need not prove the above-they are presumed to exist </li></ul>
  3. 3. Transferability & Negotiability <ul><li>Nature of Negotiable Instruments </li></ul><ul><li>-Demand or Time Instruments </li></ul><ul><li>-Order or Bearer Instruments </li></ul>
  4. 4. Types of Negotiable Instruments <ul><li>Negotiable by Law </li></ul><ul><li>-Bill of Exchange </li></ul><ul><li>-Cheque </li></ul><ul><li>-Promissory Note </li></ul><ul><li>Negotiable by Usage </li></ul><ul><li>-Bank Draft </li></ul><ul><li>-Dividend Warrant </li></ul><ul><li>-Interest Warrant </li></ul><ul><li>-Certificate of Deposit </li></ul><ul><li>-Commercial paper </li></ul>
  5. 5. Bill of Exchange: Definition , Features & Specimen <ul><li>Writing </li></ul><ul><li>Order </li></ul><ul><li>Unconditional order </li></ul><ul><li>Signature of Maker </li></ul><ul><li>Certain Drawee </li></ul><ul><li>Certain Amount </li></ul><ul><li>Payment of Money </li></ul><ul><li>Nature of Instrument </li></ul>
  6. 6. Cheque: Definition , Features & Specimen <ul><li>Features of a Bill of Exchange </li></ul><ul><li>-writing </li></ul><ul><li>-order to pay </li></ul><ul><li>-payment of money </li></ul><ul><li>-signature of maker </li></ul><ul><li>-certain amount </li></ul><ul><li>-bearer or order </li></ul><ul><li>Other Features </li></ul><ul><li>-drawn on a banker </li></ul><ul><li>-payable only on demand </li></ul>
  7. 7. Differences Between a Bill of Exchange and a Cheque <ul><li>Drawee </li></ul><ul><li>Nature </li></ul><ul><li>Form </li></ul><ul><li>Acceptance </li></ul><ul><li>Days of Grace </li></ul><ul><li>Notice of Dishonour </li></ul><ul><li>Legal Bar </li></ul><ul><li>Statutory Protection </li></ul><ul><li>Countermanding Payment </li></ul><ul><li>Death-Insolvency of Drawer </li></ul>
  8. 8. Promissory Note <ul><li>Definition </li></ul><ul><li>Essential Features </li></ul><ul><li>Specimen </li></ul>
  9. 9. Crossing of Cheques <ul><li>Meaning of Crossing </li></ul><ul><li>Types of Crossing: General Crossing and Special Crossing </li></ul><ul><li>Examples of Crossing </li></ul><ul><li>Account Payee Crossing </li></ul><ul><li>Not Negotiable Crossing </li></ul><ul><li>Persons Authorised to Cross Cheques </li></ul><ul><li>Cancellation of Crossing </li></ul>
  10. 10. Endorsement <ul><li>Meaning </li></ul><ul><li>Types of Endorsement: Blank, Full, Restrictive, Conditional, Sans Recourse,Conditional,Facultative & Sans Frais </li></ul><ul><li>Regularity of Endorsement </li></ul>
  11. 11. THANK YOU

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