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Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
Negotiable instruments
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Negotiable instruments

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  • 1. GROUP -3 Name Roll No. Hardik Dodia. 11 Rosita Fernandes. 12 13 14 Aparna Gawde. 15
  • 2. A negotiable instrument is one which entitles a person to a sum of money and which can be transferred from one person to another either by mere delivery, or by endorsement & delivery DEFINITION Section 13, “ a promissory note, bill of exchange or cheque payable either to order or bearer, whether the words “order “ or “bearer” appear on the instrument or not”
  • 3.
    • Free transferability.
    • Holder’s title free from defects.
    • Recovery.
    • Presumptions of sec 118 & 119:- Date, Time of acceptance, Time of transfer, Order of endorsement, Stamp, Holder in due course, Consideration, Proof.
  • 4.
    • By Statue:-
    • Promissory Note
    • Bills of exchange
    • Cheques
    • By Usage:-
    • Share Warrants
    • Dock Warrants
    • Bearer Bonds
    • Exchequer Bills
    • Dividend Warrants
    • Circular Notes
    • Bank Notes / Drafts
    • Debentures
    • Government Promissory Note
    • Railway Receipts.
  • 5.  
  • 6.  
  • 7.  
  • 8.  
  • 9.
    • Inland Instruments [Section 11]
    • A promissory note, bill of exchange or cheque payable is an inland instrument both the following two conditions are fulfilled:-
    • It must be drawn in India
    • It must be payable in India, or it must be drawn upon any person resident in India
    • E.g.:- “A bill drawn in Delhi on a merchant in Agra
    • and accepted payable in London”.
    • Foreign Instruments [Section 1]
    • An instrument which is not an inland instrument is deemed to be a foreign instrument.
    • E.g.:- “A bill drawn in Delhi on a merchant in London
    • and accepted payable in London”.
    • “ A bill drawn in London on a merchant in Delhi
    • and accepted payable in Delhi”.
  • 10.
    • Trade Bill
    • A bill drawn and accepted for a genuine trade transaction is termed as a trade bill. This is drawn by a seller on the buyers purchasing goods on credit.
    • Time Bill
    • An instrument in which time for payment is mentioned. Any promissory note, bills of exchange is a time instrument when it expresses to be payble
    • After a specified period
    • After sight
    • On the happening of event which is certain to happen
    • E.g.:- “I promise to pay Mr. A Rs 500 after 3 months”.
    • “ I promise to pay Mr. A Rs 500 after sight”.
    • “ I promise to pay Mr. A Rs 500 after Mr. B’s death’.
    • Accommodation Bill
    • An accommodation bill is a bill which is drawn, accepted without consideration.
    • E.g.:- “X needs funds, draws a bill on Y who
    • accepts it & gets it discounted with his banker &
    • on due date remits the requisite amount to Y
    • to enable him to meet the bill, such a bill is an accommodation bill”.
  • 11.
    • Bill in Sets
    • A bill of exchange drawn in parts is called bill in sets.
    • Documentary Bill
    • A bill to which the documents of title of goods (i.e. Railway Receipts, Bill of Lading) and other documents are attached is called a documentary bill.
    • Clean Bill
    • A bill to which no documents relating to goods (for the transaction of which the bill is being drawn) is attached is called a clean bill.
  • 12.  

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