This document discusses different types of negotiable instruments including promissory notes, bills of exchange, and cheques. It defines each instrument, outlines their essential elements and parties involved. For promissory notes and bills of exchange, it distinguishes between the two by comparing their key characteristics like number of parties, nature of liability, acceptance requirements, and more. Examples of scenarios are also provided to demonstrate how each instrument would work in practice.
Bill of exhange and promissery notes and cheques by tahseen ullah- 01Tahseen Ullah Shah
There are two main types of financial instruments discussed in the document: promissory notes and bills of exchange.
A promissory note contains an unconditional promise by the maker to pay a certain sum of money to the payee. It must be in writing, signed by the maker, and include an unambiguous promise to pay a definite amount of money in legal tender.
A bill of exchange is an unconditional order by the drawer for the drawee to pay a certain sum of money to the payee. It involves three parties: the drawer, drawee, and payee. While a promissory note only requires two parties: the maker and payee.
The document also discusses cheques
1) The document summarizes the key aspects of the Negotiable Instruments Act 1881, including definitions of negotiable instruments such as promissory notes, bills of exchange, and cheques.
2) It outlines the essential characteristics and elements of different types of negotiable instruments, parties involved, and legal presumptions.
3) The key concepts covered include negotiation, endorsement, accommodation bills, discharge of parties, and liabilities of parties to negotiable instruments.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 including definitions of promissory notes, bills of exchange, and cheques. It provides details on their essential characteristics and how they differ. A promissory note contains an unconditional undertaking signed by the maker to pay a certain sum of money. A bill of exchange is an unconditional order signed by the maker directing payment of a sum of money. A cheque is a bill of exchange drawn on a specified banker and payable on demand.
The document discusses the Negotiable Instruments Act of 1881 and defines key concepts related to negotiable instruments such as bills of exchange, cheques, promissory notes, holders, holders in due course, negotiation, endorsement and types of endorsement. It provides examples and explanations of these terms and concepts. The document is intended to educate about the legal definitions and principles governing negotiable instruments in India.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It covers:
1) The main types of negotiable instruments like promissory notes, bills of exchange, and cheques. It explains their essential elements and differences.
2) Key parties to negotiable instruments like drawers, drawees, makers, payees, holders, and endorsers. It also discusses capacities of different parties.
3) Important concepts like crossing of cheques, classification of instruments, presumption of consideration, and distinction between payment in due course vs other payments.
4) The characteristics and requirements to qualify as a holder in due course, who has additional rights
Negotiable Instruments Act ,1881 - Legal Environment of Business Dona Sebastian
This document discusses negotiable instruments under Indian law. It defines negotiable instruments as documents that are freely transferable from one person to another. The three main types of negotiable instruments recognized under the Negotiable Instruments Act of 1881 are promissory notes, bills of exchange, and cheques. The document outlines the key parties, characteristics, and essential elements of each type of instrument. It also distinguishes between promissory notes and bills of exchange as well as bills of exchange and cheques.
This document defines and explains the key characteristics of negotiable instruments including bills of exchange, promissory notes, and cheques. It states that a negotiable instrument is a device for transferring debt from one person to another and includes any document where ownership can be transferred through simple delivery. The document then outlines the essential elements and parties involved in promissory notes, bills of exchange, and cheques. It provides comparisons of their characteristics and differences between the instruments.
The document discusses negotiable instruments under Indian law, specifically focusing on promissory notes. It defines a promissory note according to the Negotiable Instruments Act and outlines its essential features, such as containing an unconditional promise to pay a certain sum of money. It discusses key parties to a promissory note like the maker and payee. It also provides examples from case law rulings related to determining what constitutes a promissory note under the Act.
Bill of exhange and promissery notes and cheques by tahseen ullah- 01Tahseen Ullah Shah
There are two main types of financial instruments discussed in the document: promissory notes and bills of exchange.
A promissory note contains an unconditional promise by the maker to pay a certain sum of money to the payee. It must be in writing, signed by the maker, and include an unambiguous promise to pay a definite amount of money in legal tender.
A bill of exchange is an unconditional order by the drawer for the drawee to pay a certain sum of money to the payee. It involves three parties: the drawer, drawee, and payee. While a promissory note only requires two parties: the maker and payee.
The document also discusses cheques
1) The document summarizes the key aspects of the Negotiable Instruments Act 1881, including definitions of negotiable instruments such as promissory notes, bills of exchange, and cheques.
2) It outlines the essential characteristics and elements of different types of negotiable instruments, parties involved, and legal presumptions.
3) The key concepts covered include negotiation, endorsement, accommodation bills, discharge of parties, and liabilities of parties to negotiable instruments.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 including definitions of promissory notes, bills of exchange, and cheques. It provides details on their essential characteristics and how they differ. A promissory note contains an unconditional undertaking signed by the maker to pay a certain sum of money. A bill of exchange is an unconditional order signed by the maker directing payment of a sum of money. A cheque is a bill of exchange drawn on a specified banker and payable on demand.
The document discusses the Negotiable Instruments Act of 1881 and defines key concepts related to negotiable instruments such as bills of exchange, cheques, promissory notes, holders, holders in due course, negotiation, endorsement and types of endorsement. It provides examples and explanations of these terms and concepts. The document is intended to educate about the legal definitions and principles governing negotiable instruments in India.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It covers:
1) The main types of negotiable instruments like promissory notes, bills of exchange, and cheques. It explains their essential elements and differences.
2) Key parties to negotiable instruments like drawers, drawees, makers, payees, holders, and endorsers. It also discusses capacities of different parties.
3) Important concepts like crossing of cheques, classification of instruments, presumption of consideration, and distinction between payment in due course vs other payments.
4) The characteristics and requirements to qualify as a holder in due course, who has additional rights
Negotiable Instruments Act ,1881 - Legal Environment of Business Dona Sebastian
This document discusses negotiable instruments under Indian law. It defines negotiable instruments as documents that are freely transferable from one person to another. The three main types of negotiable instruments recognized under the Negotiable Instruments Act of 1881 are promissory notes, bills of exchange, and cheques. The document outlines the key parties, characteristics, and essential elements of each type of instrument. It also distinguishes between promissory notes and bills of exchange as well as bills of exchange and cheques.
This document defines and explains the key characteristics of negotiable instruments including bills of exchange, promissory notes, and cheques. It states that a negotiable instrument is a device for transferring debt from one person to another and includes any document where ownership can be transferred through simple delivery. The document then outlines the essential elements and parties involved in promissory notes, bills of exchange, and cheques. It provides comparisons of their characteristics and differences between the instruments.
The document discusses negotiable instruments under Indian law, specifically focusing on promissory notes. It defines a promissory note according to the Negotiable Instruments Act and outlines its essential features, such as containing an unconditional promise to pay a certain sum of money. It discusses key parties to a promissory note like the maker and payee. It also provides examples from case law rulings related to determining what constitutes a promissory note under the Act.
The document summarizes key aspects of the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as documents that allow the transfer of rights from one person to another. The Act covers three main instruments - promissory notes, bills of exchange, and cheques. It establishes characteristics of negotiable instruments like being freely transferable and the holder having title free of defects. The document also outlines parties, essentials, and types of the three instruments.
This document defines key parties and concepts related to negotiable instruments. It explains that a negotiable instrument guarantees payment of a specific amount, and examples include promissory notes and checks. A holder is someone legally entitled to enforce payment. To be a holder, one must be entitled to possess, receive payment, and negotiate the instrument. A holder in due course is a holder who acquired the instrument in good faith, for value, and without defects. The document also discusses joint holders, drawers, acceptors, capacities and liabilities of various parties.
This document provides an introduction and overview of negotiable instruments under Indian law. It defines key terms like negotiable instrument, bill of exchange, promissory note, and cheque. It outlines the main objectives and features of the Negotiable Instruments Act of 1881. Examples of negotiable instruments are given and the essential features like writing, money, transferability etc. are summarized. Different types of negotiable instruments like accommodation bills, fictitious bills, inland vs foreign instruments are also defined. The document classifies and explains the parties and characteristics of bills of exchange, promissory notes, and cheques. Crossing of cheques and different bank drafts are briefly covered.
Chapter 27:Liability of Parties to Negotiable InstrumentsTara Kissel, M.Ed
This document provides an overview of liability for parties involved in negotiable instruments. It discusses the liability of primary parties like makers and acceptors, as well as secondary parties like drawers and endorsers. Secondary parties have conditional liability that requires conditions like presentment, dishonor, and notice of dishonor to be met. Exceptions, defenses, and ways liability can be discharged are also covered. The learning objectives are to understand the different capacities and liabilities of those involved in negotiable instruments.
The document discusses key concepts around negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments and outlines the main types recognized by law: bills of exchange, checks, and promissory notes. For each type, it describes the essential elements and parties involved, using examples. It also briefly discusses concepts like dishonor, notary public, noting, and protest related to negotiable instruments.
The document provides an overview of negotiable instruments under Indian law. It defines key negotiable instruments like promissory notes, bills of exchange, and cheques. It outlines their essential elements, parties involved, and examples. The document also discusses negotiation, endorsement, and types of endorsement. The key information covered includes definitions of negotiable instruments, their distinguishing features, types like inland/foreign bills and time/demand bills, and roles of parties in promissory notes, bills of exchange, and cheques.
These future transaction (credit) done with help of documents called as Negotiable Instruments. The word Negotiable means ‘transferable by delivery’ & the word Instrument means ‘written document’. types of negotiable instruments like cheque and its types, promissory notes and its features and bill of exchange. endorsement and it types. crossing of cheque.
The document summarizes key aspects of negotiable instruments law in India as defined by the Negotiable Instruments Act, 1881. It defines negotiable instruments as written documents that are freely transferable and create a monetary obligation. The three main types of negotiable instruments are promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of each, including the parties involved, requirements for validity, methods of negotiation or assignment, and concepts of holders and holders in due course. The document provides an overview of key terms and processes regarding negotiable instruments under Indian law.
The document discusses negotiation and endorsement of negotiable instruments under the Negotiable Instruments Act. It defines negotiation as transferring a negotiable instrument like a promissory note, bill of exchange, or cheque to another person to make them the holder. Negotiation can occur through delivery alone if the instrument is payable to bearer, or through endorsement and delivery if payable to order. Endorsement involves signing the instrument to transfer rights and must be completed by delivery. There are different types of endorsements like blank, special, restrictive, and forged.
This document summarizes the key aspects of negotiable instruments under Indian law. It defines negotiable instruments as documents transferable by delivery that create rights, including promissory notes, bills of exchange, and cheques. It outlines the essential elements and parties involved in promissory notes, bills of exchange, and cheques. It also discusses negotiation, endorsement, liability of parties, and other important concepts regarding negotiable instruments.
This document provides an outline of key topics in the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It classifies different types of negotiable instruments and outlines the essential elements and parties involved, including makers, drawers, drawees, payees, and endorsers. The document also discusses negotiation and transfer of instruments, presentation and dishonor, discharge, and rules of evidence and international law as they relate to negotiable instruments.
The document provides an overview of the Negotiable Instruments Act 1881 in India. It discusses:
1) The history leading to the development and implementation of the Act in 1881 to standardize rules around negotiable instruments like promissory notes and bills of exchange.
2) Key definitions in the Act including what makes an instrument negotiable based on certain conditions, and definitions of holders in due course.
3) Essential elements for an instrument to be considered negotiable, including being in writing, unconditional promises to pay, and ability to transfer ownership through endorsement and delivery.
This document discusses different types of presentment required under negotiable instruments law. It covers (1) presentment for acceptance of bills of exchange, including to whom bills can be presented, time and place requirements, and effects of non-presentment; (2) presentment of promissory notes payable at sight; (3) presentment for payment of promissory notes, bills of exchange and cheques, including requirements for instruments payable on demand or at a future date; and (4) presentment of cheques to charge the drawee bank, including presentation of truncated cheques.
This document discusses presentment, negotiation, and discharge of parties from liabilities regarding negotiable instruments.
It first covers presentment, including the meaning of presentment, presentment for acceptance, presentment for sight, and presentment for payment. It discusses the essentials of valid presentment and when presentment is necessary or unnecessary.
It then discusses negotiation, including the meaning of negotiation, transfer by negotiation and assignment, endorsement, and instruments obtained unlawfully or for unlawful consideration.
Finally, it discusses discharge of parties from liabilities, including discharge of the instrument and discharge of parties. It also briefly mentions material alteration.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, and checks. It describes how instruments can be negotiable by statute or usage and the methods and essentials of negotiation, endorsement, and transfer. It also discusses the characteristics, presumptions, types (promissory notes, bills of exchange, checks), crossing and endorsement of negotiable instruments.
The document discusses negotiable instruments under Indian law. It defines negotiable instruments as written documents that are transferable by delivery, including promissory notes, bills of exchange, and cheques. It outlines the key features and types of negotiable instruments. Promissory notes are unconditional promises to pay a certain sum of money, while bills of exchange are orders to pay drawn by one party on another. Cheques combine qualities of bills of exchange and are always drawn on a bank and payable on demand. The document provides examples and definitions of the parties involved in each type of instrument.
The document provides an overview of negotiable instruments under Indian law. It defines key terms like negotiable instrument, promissory note, bill of exchange, cheque, endorsement, holder, and holder in due course. It describes the essential characteristics and requirements for these instruments and roles. It also discusses concepts like negotiation, dishonour, noting, and protest. The document is an educational reference on the basic concepts, definitions, and principles regarding negotiable instruments under the Negotiable Instruments Act of 1881 in India.
The document discusses the history and definitions of promissory notes and bills of exchange. It notes that early promissory notes originated in China in the Tang dynasty and were later used in trade between Italian city-states and Spain in the 14th century. The document defines a promissory note as a written promise by the maker to pay a sum of money to the payee at a fixed time, and a bill of exchange as an unconditional written order by a drawer directing the drawee to pay a sum to a payee. It outlines the essential elements and parties involved in each, including the maker, payee, drawee, and types of bills such as those for collection, discounted, or retired.
This document defines and explains negotiable instruments. It begins by stating that a negotiable instrument is a written document that entitles the holder to a sum of money and can be transferred through delivery or endorsement. It then lists the key characteristics of negotiable instruments, including being freely transferable and the holder having clear title. The document goes on to define the main types of negotiable instruments - promissory notes, bills of exchange, and cheques - and explains the essential components and parties involved in each.
The document defines and explains key concepts relating to negotiable instruments under the Negotiable Instruments Act 1881. It defines a negotiable instrument as a promissory note, bill of exchange, or cheque that is either payable to order or to bearer. A negotiable instrument must be freely transferable, give the holder a clear title, allow the holder to sue in their own name, and be transferable an unlimited number of times. It distinguishes between different types of negotiable instruments like promissory notes, bills of exchange, and cheques. It also defines important concepts like holder and holder-in-due-course.
The document summarizes key aspects of the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as documents that allow the transfer of rights from one person to another. The Act covers three main instruments - promissory notes, bills of exchange, and cheques. It establishes characteristics of negotiable instruments like being freely transferable and the holder having title free of defects. The document also outlines parties, essentials, and types of the three instruments.
This document defines key parties and concepts related to negotiable instruments. It explains that a negotiable instrument guarantees payment of a specific amount, and examples include promissory notes and checks. A holder is someone legally entitled to enforce payment. To be a holder, one must be entitled to possess, receive payment, and negotiate the instrument. A holder in due course is a holder who acquired the instrument in good faith, for value, and without defects. The document also discusses joint holders, drawers, acceptors, capacities and liabilities of various parties.
This document provides an introduction and overview of negotiable instruments under Indian law. It defines key terms like negotiable instrument, bill of exchange, promissory note, and cheque. It outlines the main objectives and features of the Negotiable Instruments Act of 1881. Examples of negotiable instruments are given and the essential features like writing, money, transferability etc. are summarized. Different types of negotiable instruments like accommodation bills, fictitious bills, inland vs foreign instruments are also defined. The document classifies and explains the parties and characteristics of bills of exchange, promissory notes, and cheques. Crossing of cheques and different bank drafts are briefly covered.
Chapter 27:Liability of Parties to Negotiable InstrumentsTara Kissel, M.Ed
This document provides an overview of liability for parties involved in negotiable instruments. It discusses the liability of primary parties like makers and acceptors, as well as secondary parties like drawers and endorsers. Secondary parties have conditional liability that requires conditions like presentment, dishonor, and notice of dishonor to be met. Exceptions, defenses, and ways liability can be discharged are also covered. The learning objectives are to understand the different capacities and liabilities of those involved in negotiable instruments.
The document discusses key concepts around negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments and outlines the main types recognized by law: bills of exchange, checks, and promissory notes. For each type, it describes the essential elements and parties involved, using examples. It also briefly discusses concepts like dishonor, notary public, noting, and protest related to negotiable instruments.
The document provides an overview of negotiable instruments under Indian law. It defines key negotiable instruments like promissory notes, bills of exchange, and cheques. It outlines their essential elements, parties involved, and examples. The document also discusses negotiation, endorsement, and types of endorsement. The key information covered includes definitions of negotiable instruments, their distinguishing features, types like inland/foreign bills and time/demand bills, and roles of parties in promissory notes, bills of exchange, and cheques.
These future transaction (credit) done with help of documents called as Negotiable Instruments. The word Negotiable means ‘transferable by delivery’ & the word Instrument means ‘written document’. types of negotiable instruments like cheque and its types, promissory notes and its features and bill of exchange. endorsement and it types. crossing of cheque.
The document summarizes key aspects of negotiable instruments law in India as defined by the Negotiable Instruments Act, 1881. It defines negotiable instruments as written documents that are freely transferable and create a monetary obligation. The three main types of negotiable instruments are promissory notes, bills of exchange, and cheques. It outlines the essential characteristics of each, including the parties involved, requirements for validity, methods of negotiation or assignment, and concepts of holders and holders in due course. The document provides an overview of key terms and processes regarding negotiable instruments under Indian law.
The document discusses negotiation and endorsement of negotiable instruments under the Negotiable Instruments Act. It defines negotiation as transferring a negotiable instrument like a promissory note, bill of exchange, or cheque to another person to make them the holder. Negotiation can occur through delivery alone if the instrument is payable to bearer, or through endorsement and delivery if payable to order. Endorsement involves signing the instrument to transfer rights and must be completed by delivery. There are different types of endorsements like blank, special, restrictive, and forged.
This document summarizes the key aspects of negotiable instruments under Indian law. It defines negotiable instruments as documents transferable by delivery that create rights, including promissory notes, bills of exchange, and cheques. It outlines the essential elements and parties involved in promissory notes, bills of exchange, and cheques. It also discusses negotiation, endorsement, liability of parties, and other important concepts regarding negotiable instruments.
This document provides an outline of key topics in the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It classifies different types of negotiable instruments and outlines the essential elements and parties involved, including makers, drawers, drawees, payees, and endorsers. The document also discusses negotiation and transfer of instruments, presentation and dishonor, discharge, and rules of evidence and international law as they relate to negotiable instruments.
The document provides an overview of the Negotiable Instruments Act 1881 in India. It discusses:
1) The history leading to the development and implementation of the Act in 1881 to standardize rules around negotiable instruments like promissory notes and bills of exchange.
2) Key definitions in the Act including what makes an instrument negotiable based on certain conditions, and definitions of holders in due course.
3) Essential elements for an instrument to be considered negotiable, including being in writing, unconditional promises to pay, and ability to transfer ownership through endorsement and delivery.
This document discusses different types of presentment required under negotiable instruments law. It covers (1) presentment for acceptance of bills of exchange, including to whom bills can be presented, time and place requirements, and effects of non-presentment; (2) presentment of promissory notes payable at sight; (3) presentment for payment of promissory notes, bills of exchange and cheques, including requirements for instruments payable on demand or at a future date; and (4) presentment of cheques to charge the drawee bank, including presentation of truncated cheques.
This document discusses presentment, negotiation, and discharge of parties from liabilities regarding negotiable instruments.
It first covers presentment, including the meaning of presentment, presentment for acceptance, presentment for sight, and presentment for payment. It discusses the essentials of valid presentment and when presentment is necessary or unnecessary.
It then discusses negotiation, including the meaning of negotiation, transfer by negotiation and assignment, endorsement, and instruments obtained unlawfully or for unlawful consideration.
Finally, it discusses discharge of parties from liabilities, including discharge of the instrument and discharge of parties. It also briefly mentions material alteration.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, and checks. It describes how instruments can be negotiable by statute or usage and the methods and essentials of negotiation, endorsement, and transfer. It also discusses the characteristics, presumptions, types (promissory notes, bills of exchange, checks), crossing and endorsement of negotiable instruments.
The document discusses negotiable instruments under Indian law. It defines negotiable instruments as written documents that are transferable by delivery, including promissory notes, bills of exchange, and cheques. It outlines the key features and types of negotiable instruments. Promissory notes are unconditional promises to pay a certain sum of money, while bills of exchange are orders to pay drawn by one party on another. Cheques combine qualities of bills of exchange and are always drawn on a bank and payable on demand. The document provides examples and definitions of the parties involved in each type of instrument.
The document provides an overview of negotiable instruments under Indian law. It defines key terms like negotiable instrument, promissory note, bill of exchange, cheque, endorsement, holder, and holder in due course. It describes the essential characteristics and requirements for these instruments and roles. It also discusses concepts like negotiation, dishonour, noting, and protest. The document is an educational reference on the basic concepts, definitions, and principles regarding negotiable instruments under the Negotiable Instruments Act of 1881 in India.
The document discusses the history and definitions of promissory notes and bills of exchange. It notes that early promissory notes originated in China in the Tang dynasty and were later used in trade between Italian city-states and Spain in the 14th century. The document defines a promissory note as a written promise by the maker to pay a sum of money to the payee at a fixed time, and a bill of exchange as an unconditional written order by a drawer directing the drawee to pay a sum to a payee. It outlines the essential elements and parties involved in each, including the maker, payee, drawee, and types of bills such as those for collection, discounted, or retired.
This document defines and explains negotiable instruments. It begins by stating that a negotiable instrument is a written document that entitles the holder to a sum of money and can be transferred through delivery or endorsement. It then lists the key characteristics of negotiable instruments, including being freely transferable and the holder having clear title. The document goes on to define the main types of negotiable instruments - promissory notes, bills of exchange, and cheques - and explains the essential components and parties involved in each.
The document defines and explains key concepts relating to negotiable instruments under the Negotiable Instruments Act 1881. It defines a negotiable instrument as a promissory note, bill of exchange, or cheque that is either payable to order or to bearer. A negotiable instrument must be freely transferable, give the holder a clear title, allow the holder to sue in their own name, and be transferable an unlimited number of times. It distinguishes between different types of negotiable instruments like promissory notes, bills of exchange, and cheques. It also defines important concepts like holder and holder-in-due-course.
The Negotiable Instruments Act 1881 evolved over many years through several drafts to address objections from the mercantile community regarding deviations from English law. The Act was originally drafted in 1866 but faced issues being passed. It was redrafted in 1877 and again in 1880 on the recommendation of a new law commission. The fourth draft introduced in 1881 became the Negotiable Instruments Act 1881 that is still in force today. The Act governs negotiable instruments like promissory notes, bills of exchange, and cheques by establishing definitions, rights, and liabilities of parties involved.
This document defines bills of exchange and promissory notes under Indian law. It provides key details about the parties involved, features, types and differences between bills of exchange and promissory notes. Bills of exchange require three parties - a drawer, drawee and payee, while promissory notes only require a maker and payee. Bills of exchange must be accepted to be valid, while promissory notes do not require acceptance since the maker is already liable. The document also provides examples of each instrument.
Conventional & Islamic Negotiable Instrument ASMAH CHE WAN
The document discusses the differences between conventional and Islamic negotiable instruments. For conventional instruments, negotiable instruments are governed by the Bills of Exchange Act 1949 and Cheques Act 1957, while Islamic instruments are governed by the Islamic Financial Services Act 2013. Some key types of conventional instruments include bills of exchange, cheques, promissory notes, and bankers' drafts. Islamic negotiable instruments include the Islamic Negotiable Instrument of Deposit (INID), which is based on the al-mudharabah concept, and the Negotiable Islamic Debt Certificate (NIDC).
This document summarizes key aspects of the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments as written documents that are freely transferable and specify payment to a specific person or bearer. The three main types are promissory notes, bills of exchange, and cheques. It outlines essential requirements for each, such as being in writing and signed. It also discusses concepts like holders in due course, payment in due course, and maturity dates including days of grace. Presumptions around consideration, dates, and transfers are also summarized.
1. The document discusses various types of negotiable instruments under the Negotiable Instruments Act including promissory notes, bills of exchange, and cheques.
2. It describes the key characteristics and essential elements of each type of instrument, such as an unconditional promise to pay, certainty of parties and amounts, and signatures.
3. The document also covers topics like crossing and endorsement of cheques, negotiation of instruments, notice of dishonour, and criminal penalties for dishonour of cheques.
The document discusses negotiable instruments under Indian law. It defines negotiable instruments as written and signed documents that entitle the holder to a specified sum of money and are freely transferable. The three main types of negotiable instruments are promissory notes, bills of exchange, and cheques. Promissory notes contain an unconditional promise to pay, bills of exchange contain an order to pay, and cheques are drawn on a bank and payable on demand. Key characteristics include being in writing, containing an unconditional obligation, and specifying a certain sum payable. Negotiable instruments can be transferred between parties either through negotiation (delivery or endorsement) or assignment.
A negotiable instrument is a written document that allows ownership rights to be transferred freely. The key characteristics are that it contains an unconditional promise to pay a certain sum of money, is in writing, and is freely transferable through delivery or endorsement. The main types of negotiable instruments are promissory notes, bills of exchange, and cheques. A promissory note contains a promise to pay, a bill of exchange contains an order to pay, and a cheque is a bill of exchange drawn on a bank and payable on demand.
The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and cheques.
[1] A promissory note is a written promise by a maker to pay a specified sum of money to the payee. A bill of exchange contains an unconditional order by the drawer for the drawee to pay a specified sum to the payee. A cheque is a type of bill of exchange that is drawn on a bank and payable on demand.
[2] The key parties for each instrument are identified - maker and payee for promissory notes, drawer, drawee, and payee for bills of exchange. Cheques have a drawer, specified bank
The document discusses negotiable instruments under Pakistani law. It defines a negotiable instrument as a promissory note, bill of exchange, or cheque according to Section 13(1) of the negotiable instrument Act, 1881. A negotiable instrument is a written document that creates a right to payment for the holder and can be freely transferred between parties. Key characteristics include free transferability, the holder having title free of defects, and the ability of the transferee to sue in their own name. The document also discusses the definitions, essentials, and parties involved in promissory notes, bills of exchange, and cheques.
This document provides an overview of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines key terms like promissory notes, bills of exchange, and cheques. It outlines the essential requirements for valid negotiable instruments and differences between types of instruments. It also discusses acceptance, transfer through endorsement, rights and liabilities of parties, and enforcement of secondary liability.
The document discusses negotiable instruments under Indian law as defined in the Negotiable Instruments Act of 1881. It defines a negotiable instrument as a written document that creates a right in favor of someone and can be freely transferred. The key types of negotiable instruments recognized are promissory notes, bills of exchange, and cheques. A promissory note contains a written promise to pay a stated sum, a bill of exchange is an unconditional order to pay signed by the maker, and a cheque orders payment from a bank account. Negotiable instruments must meet characteristics like being freely transferable, unconditional, and not requiring notice of transfer.
1. The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and cheques. It defines each instrument and outlines their key characteristics.
2. A promissory note contains an unconditional promise to pay a certain sum of money to a specific payee. A bill of exchange contains an unconditional order to pay money, and involves a drawer, drawee, and payee.
3. A cheque is a type of bill of exchange that is drawn on a bank and payable on demand. It must be dated, signed by the drawer, and the bank is obligated to pay the amount if the drawer has sufficient funds.
This document discusses negotiable instruments under Indian law. It defines negotiable instruments as promissory notes, bills of exchange, or cheques that are freely transferable. It outlines the key characteristics of negotiable instruments, including that they provide title to the holder, allow the holder to sue in their own name, and come with legal presumptions around consideration and transfer dates. The document also describes the formal requirements and parties for different types of negotiable instruments like promissory notes, bills of exchange, and cheques. Finally, it discusses how negotiable instruments can be dishonored through non-acceptance or non-payment, and the process for notifying parties of dishonor.
The document provides information on negotiable instruments under Indian law. It defines key terms like promissory note, bill of exchange, cheque and discusses their essential elements. It explains that the Negotiable Instruments Act was enacted in India in 1881 and covers the entire country except Jammu and Kashmir. The key highlights are the definition of negotiable instruments, types of promissory notes, bills of exchange and cheques, parties to these instruments and other concepts like maturity date and holder in due course.
The document defines and compares different types of negotiable instruments - promissory notes, bills of exchange, and cheques. It states that a negotiable instrument is a document that allows the transfer of rights from one person to another according to the Negotiable Instruments Act of 1881. It then provides details on the key characteristics and requirements for each type of instrument, such as needing to contain an unconditional promise to pay, having ascertainable parties, and being in writing. It also highlights some of the differences between these instruments, such as cheques requiring a specified banker as the drawee and always being payable on demand.
Negotiable Instruments Act 1881
Significance of negotiable instruments
Features of negotiable instruments
Cheque Meaning
Types of Cheque
MICR – Meaning
Crossing
Crossing of Cheque
Holder in due course
Payment in due course
Endorsement
Paying Banker
Dishonour of Cheque
Statutory protection to a paying Banker
Material Alteration
Statutory protection in case of a Materially altered Cheque
Collecting Banker
Duties and Liabilities of Collecting Banker
Protection of Collection Banker
This document defines negotiable instruments and provides details about promissory notes, bills of exchange, and cheques according to the Negotiable Instruments Act 1881. It discusses the characteristics of negotiable instruments and defines key parties like the maker, holder, and holder in due course. The document outlines essential elements of promissory notes, bills of exchange, and cheques and provides examples. It also discusses types of negotiable instruments, endorsements, and discharge of obligations.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881. It defines negotiable instruments as documents that allow the transfer of rights from one person to another. The Act recognizes promissory notes, bills of exchange, and cheques as negotiable instruments. It outlines essential characteristics like being freely transferable and certain presumptions that apply. The document also explains key parties and elements of promissory notes, bills of exchange, and cheques.
Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
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2. NEGOTIABLE INSTRUMENTS
• According to Sec 13 (1) of the negotiable instrument
act, a “negotiable instrument” means a promissory
note, bill of exchange or cheque payable either, to
order or to bearer.
• Conditions for an instrument to be considered a
negotiable instrument are:
i. It is in such a form which entitles the holder to sue
in his own name.
ii. It is transferable.
3. TYPES OF NEGOTIABLE INSTRUMENTS
There are three main types of negotiable instruments.
They are as follows:
• Promissory Note
• Bill of Exchange
• Cheque
4. NEGOTIABLE INSTRUMENTS
• The negotiable instrument act expressly recognizes
only three instruments viz., a promissory note, bill of
exchange and a cheque. It, however, does not exclude
any other instrument to be included there in provided
that such instrument satisfies the characteristics of
negotiability.
• The essentials of the instruments are similar to a great
extent.
5. PROMISSORY NOTE
• According to Sec 4 of the negotiable instrument act a
"promissory note" is in an instrument in writing (not
being a bank-note or a currency note) containing an
unconditional undertaking signed by the maker, to
pay on demand or at a fixed or determinable future
time] a certain sum of money only to, or to the order
of a certain person, or to the bearer of the instrument.
6. PARTIES TO A PROMISSORY NOTE
• Maker:
Maker is the person who makes and signs the
promissory note. He agrees to pay a certain amount on
the date of maturity.
• Payee:
The payee is the person to whom the amount due on
promissory note is payable.
7. ESSENTIALS OF A PROMISSORY NOTE
(i) Written:
Promissory note must be in written form. A verbal
promise to pay does not become a promissory note.
(ii) It must contain promise to pay:
There must be a promise or an undertaking to pay. A
mere acknowledgment of debt is not a promissory
note.
(iii) Unconditional promise:
It must contain an unconditional promise to pay. The
promise to pay must not depend upon the happening
of some uncertain event or condition.
(iv) Signature of maker:
The maker must sign the promissory note.
8. ESSENTIALS OF A PROMISSORY NOTE
(v) Maker must be a certain person:
The promissory note must indicate who is the person
taking responsibility to pay the amount.
(vi) The payee must be certain:
The payee of promissory note must also a certain person.
(vii) The sum payable must also be certain:
The sum payable must also be certain and definite.
(viii) The sum payable must be in Pakistani currency:
The sum of money payable must be in Pakistani currency
a promissory note containing a promise to pay a certain
amount in foreign currency is not a valid promissory
note.
9. SCENARIO – PROMISSORY NOTE
Waqar Hussain purchased goods from Talha Malik.
Instead of paying him cash or cheque he gives him a
promissory note in which he writes “Five days after
date, I promise to pay “Talha Malik” or order Rs.5,000
for value receipt.
Maker:
He is also a debtor, he is the person who makes the
note and signs it. In this case it is “Waqar Hussain.”
Payee:
He is the creditor. He is the person to whom payment is
to be made. In this case it is “Talha Malik.”
11. BILL OF EXCHANGE
• According to Sec. 5, a "bill of exchange" is an
instrument in writing containing an unconditional
order, signed by the maker, directing a certain person
to pay on demand or at a fixed or determinable future
time] a certain sum of money only to, or to the order
of, a certain person or to the bearer of the instrument.
12. PARTIES TO A BILL OF EXCHANGE
• Maker/Drawer:
The maker of a bill of exchange is called the drawer.
• Drawee:
The person directed to pay the money by the drawer is
called the drawee.
• Payee:
The person named in the instrument, to whom or to
whose order the money is directed to be paid.
13. ESSENTIALS OF A BILL OF EXCHANGE
(i) Written:
The bill of exchange must be in writing. It may be
written in any language.
(ii) Unconditional order:
The order contained in the bill of exchange must be
unconditional.
(iii) Signed by the drawer:
Bill of exchange must be signed by the drawer.
(iv) The drawee must be a certain person:
The drawee of a bill of exchange must be a certain
person. His name should be mentioned in it.
14. ESSENTIALS OF A BILL OF EXCHANGE
(v) The payee must be certain:
The payee of the bill also be a certain person.
(vi) The sum payable must be certain:
The sum payable must be certain and definite.
(vii) Pakistani currency:
The sum payable must be in Pakistani currency.
(viii) Other legal formalities:
(i) It should be dated.
(ii) Name of place where it is drawn.
(iii) It should be attested.
(iv) It should be properly stamped.
15. DISTINCTION BETWEEN PROMISSORY
NOTE AND A BILL OF EXCHANGE
I. Number of parties:
In promissory note there are two parties.
In a bill of exchange there are three parties.
II. Promise and order:
In an promissory note there is a promise to pay.
In an bill of exchange there is an order to pay.
III. Nature of liability:
Liability of the maker of promissory note is primary.
Liability of the maker of a bill of exchange is secondary
in nature.
16. DISTINCTION BETWEEN PROMISSORY
NOTE AND A BILL OF EXCHANGE
IV. Position of make:
The maker of a promissory note stands in an immediate
relation with the payee.
In bill of exchange, the drawn of bill stands in an
immediate relation with the drawee and the drawee
with payee.
V. As to liability of drawer:
The maker of a promissory note is a debtor.
The drawer of bill of exchange is the creditor.
VI. Payable to bearer:
A promissory note can not be drawn payable to bearer.
A bill of exchange can be drawn payable to bearer.
17. DISTINCTION BETWEEN PROMISSORY
NOTE AND A BILL OF EXCHANGE
VII. As to acceptance:
A promissory note needs no acceptance.
A bill of exchange needs acceptance by the drawee.
VIII. Payable to maker:
A promissory note cannot made payable to maker
himself.
A bill of exchange can be make payable to the maker
himself.
18. DISTINCTION BETWEEN PROMISSORY
NOTE AND A BILL OF EXCHANGE
IX. As to notice of dishonor:
In case of dishonor of promissory note there is no need
to give a notice of dishonor to the maker.
In case of dishonor of a bill of exchange there is a need
to give notice to all the parties of bill.
X. As to protest:
A promissory note need not to be protested.
A foreign bill of exchange must be protested for
dishonor.
19. SCENARIO – BILL OF EXCHANGE
Pak Elektron Limited is a manufacturer of home
appliances, and Ibrahim Electronics is a retailer which
deals in the sale of these appliances. The retailer has
been in a business relationship with PEL for a long time
but currently it does not have enough cash to buy new
stock of refrigerators. Pak Elektron Limited has spare
refrigerators in its finished goods inventory which it
intends to sell. Therefore, it agrees to sell these
refrigerators on 30-day credit to Ibrahim Electronics
considering the past repute of the retailer.
20. SCENARIO – BILL OF EXCHANGE
A bill of exchange amounting Rs 900,000 has been
drawn by PEL on Ibrahim Electronics which is the
drawee in this case. Payee in this case is Pak Elektron
Limited itself. The bill of exchange has been drawn on
22nd April, 2018 and will be due for payment after one
month. After acceptance of bill by Ibrahim Electronics, it
will be given to Pak Elektron Limited. On 22nd May,
2018 Pak Elektron Limited will be provided the sum
after presentment of bill to Ibrahim Electronics.
21. SCENARIO – BILL OF EXCHANGE
Pak Elektron Limited can also get cash immediately by
selling the bill of exchange to a bank which would give
face value of the bill to PEL, and would get the money
from Ibrahim Electronics instead of PEL on the date of
maturity.
22. CHEQUE
• A "cheque" is a bill of exchange drawn on a specified
banker and not expressed payable otherwise than on
demand.
23. PARTIES TO A CHEQUE
• Maker/Drawer:
The maker of a cheque is called the drawer.
• Drawee:
The person directed to pay the money by the drawer is
called the drawee. Cheque is always drawn on a
specified bank.
• Payee:
The person to whom the money is directed to be paid.
24. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
I. Drawn:
Cheque is drawn on a banker.
Bill of exchange may be drawn on any party or
individual.
II. Parties:
Cheque has three parties – the drawer, the drawee, and
payee.
Bill of exchange has three parties – the drawer, the
drawee, and the payee.
25. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
III. Drawn in Sets:
Cheque is seldom drawn in sets.
Foreign bills are drawn in sets.
IV. Acceptance:
Cheque does not require acceptance by the drawee.
Bill of exchange must be accepted by the drawee
before he can be made liable to pay the bill.
26. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
V. Grace days:
In case of cheque, days of grace are not allowed to a
banker.
In bill of exchange, three days of grace are always
allowed to the drawee.
VI. Stamp:
No stamp duty is payable on cheques.
Stamp duty has to be paid on bill of exchange.
27. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
VII. Printed Form:
Cheque is usually drawn on the printed form.
Bill of exchange may be drawn on any paper and need
not necessarily be printed.
VIII. Payment:
A cheque is payable immediately on demand without
any days of grace.
A bill of exchange is normally entitled to three days of
grace unless it is payable on demand.
28. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
IX. Crossing:
A cheque may be crossed.
There is no such provision in the case of a bill of
exchange.
X. Notice of dishonor:
When a cheque is not met, notice of dishonor is not
necessary.
It is necessary to give a notice of dishonor in order to
make the drawer of a bill liable.
29. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
XI. Payable to bearer on demand:
A cheque can be drawn payable to bearer on demand.
A bill of exchange cannot be so drawn.
XII. Countermanding Payment:
A cheque may be revoked by countermand of payment.
Bill of exchange cannot be countermanded.
30. DIFFERENCE BETWEEN CHEQUE AND
BILL OF EXCHANGE
XIII. Protection
A banker is given statutory protection with regard to
payment of cheques in certain circumstances.
No such protection is available to the drawee or
acceptor of a bill of exchange.
31. SCENARIO - CHEQUE
A cheque has been signed for Sheikh Advocate Agency
by its client Zulifqar Associates which is a private entity.
The cheque is of 7 lacs rupees which are to be paid for
a high court case, that is being done for Zulfiqar
Associates by the Sheikh Advocate Agency. On 21st
April, 2018 Zulfiqar Associates signed and provided the
cheque of 7 lacs rupees to the Sheikh Agency.
32. SCENARIO - CHEQUE
This is a “cross cheque” which will be directly
transferred into a bank account and cannot be collected
by any individual separately. The Drawee in this case is
HBL, whereas the Payee is Sheikh Advocate Agency and
the Drawer here is Zulfiqar Associates. This cheque is
submitted to the bank and the amount mentioned will
be transferred in the bank account of the agency, after
a certain time period.