GROUP -3 Name Roll No. Hardik Dodia. 11 Rosita Fernandes. 12 13 14 Aparna Gawde. 15
A negotiable instrument is one which entitles a person to a sum of money and which can be transferred from one person to a...
<ul><li>Free transferability. </li></ul><ul><li>Holder’s title free from defects. </li></ul><ul><li>Recovery. </li></ul><u...
<ul><li>By Statue:- </li></ul><ul><li>Promissory Note </li></ul><ul><li>Bills of exchange </li></ul><ul><li>Cheques </li><...
 
 
 
 
<ul><li>Inland Instruments [Section 11] </li></ul><ul><li>A promissory note, bill of exchange or cheque payable is an inla...
<ul><li>Trade Bill </li></ul><ul><li>A bill drawn and accepted for a genuine trade transaction is termed as a trade bill. ...
<ul><li>Bill in Sets </li></ul><ul><li>A bill of exchange drawn in parts is called bill in sets. </li></ul><ul><li>Documen...
 
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Negotiable instruments

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Negotiable instruments

  1. 1. GROUP -3 Name Roll No. Hardik Dodia. 11 Rosita Fernandes. 12 13 14 Aparna Gawde. 15
  2. 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. 3. <ul><li>Free transferability. </li></ul><ul><li>Holder’s title free from defects. </li></ul><ul><li>Recovery. </li></ul><ul><li>Presumptions of sec 118 & 119:- Date, Time of acceptance, Time of transfer, Order of endorsement, Stamp, Holder in due course, Consideration, Proof. </li></ul>
  4. 4. <ul><li>By Statue:- </li></ul><ul><li>Promissory Note </li></ul><ul><li>Bills of exchange </li></ul><ul><li>Cheques </li></ul><ul><li>By Usage:- </li></ul><ul><li>Share Warrants </li></ul><ul><li>Dock Warrants </li></ul><ul><li>Bearer Bonds </li></ul><ul><li>Exchequer Bills </li></ul><ul><li>Dividend Warrants </li></ul><ul><li>Circular Notes </li></ul><ul><li>Bank Notes / Drafts </li></ul><ul><li>Debentures </li></ul><ul><li>Government Promissory Note </li></ul><ul><li>Railway Receipts. </li></ul>
  5. 9. <ul><li>Inland Instruments [Section 11] </li></ul><ul><li>A promissory note, bill of exchange or cheque payable is an inland instrument both the following two conditions are fulfilled:- </li></ul><ul><li>It must be drawn in India </li></ul><ul><li>It must be payable in India, or it must be drawn upon any person resident in India </li></ul><ul><li>E.g.:- “A bill drawn in Delhi on a merchant in Agra </li></ul><ul><li>and accepted payable in London”. </li></ul><ul><li>Foreign Instruments [Section 1] </li></ul><ul><li>An instrument which is not an inland instrument is deemed to be a foreign instrument. </li></ul><ul><li>E.g.:- “A bill drawn in Delhi on a merchant in London </li></ul><ul><li>and accepted payable in London”. </li></ul><ul><li>“ A bill drawn in London on a merchant in Delhi </li></ul><ul><li>and accepted payable in Delhi”. </li></ul>
  6. 10. <ul><li>Trade Bill </li></ul><ul><li>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. </li></ul><ul><li>Time Bill </li></ul><ul><li>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 </li></ul><ul><li>After a specified period </li></ul><ul><li>After sight </li></ul><ul><li>On the happening of event which is certain to happen </li></ul><ul><li>E.g.:- “I promise to pay Mr. A Rs 500 after 3 months”. </li></ul><ul><li> “ I promise to pay Mr. A Rs 500 after sight”. </li></ul><ul><li> “ I promise to pay Mr. A Rs 500 after Mr. B’s death’. </li></ul><ul><li>Accommodation Bill </li></ul><ul><li>An accommodation bill is a bill which is drawn, accepted without consideration. </li></ul><ul><li>E.g.:- “X needs funds, draws a bill on Y who </li></ul><ul><li>accepts it & gets it discounted with his banker & </li></ul><ul><li>on due date remits the requisite amount to Y </li></ul><ul><li>to enable him to meet the bill, such a bill is an accommodation bill”. </li></ul>
  7. 11. <ul><li>Bill in Sets </li></ul><ul><li>A bill of exchange drawn in parts is called bill in sets. </li></ul><ul><li>Documentary Bill </li></ul><ul><li>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. </li></ul><ul><li>Clean Bill </li></ul><ul><li>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. </li></ul>
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