AIS 2102 Examples of Negotiable InstrumentsPreeti Sikder
Learning Outcome: After completion of this lesson students will be able to -
a) define promissory notes;
b) define bills of exchange;
c) define cheques;
d) distinguish between promissory notes and cheques.
Negotiable Instruments Act - Legal Environment of Business - Business Law - ...manumelwin
The word ‘negotiable’ means transferable by delivery and instrument means a written document by which a right is created in favorable of some person. The term negotiable instrument therefore literally means a document transferable by delivery.
A cheque is an order by the customer of a bank directing his banker to pay on demand, the specified amount, to the order of person named therein or to the bearer
According to SEC. 6 of the Negotiable Instruments Act, 1881, the term cheque is defined as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.”
A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date
Sec. 4 of the Negotiable Instruments Act, “A promissory note is an instrument in writing containing an unconditional order, signed by the maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.”
A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand at some point in the future.
According to Sec.5 of the Negotiable Instruments Act, 1881, “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 bearer of the instrument.
AIS 2102 Examples of Negotiable InstrumentsPreeti Sikder
Learning Outcome: After completion of this lesson students will be able to -
a) define promissory notes;
b) define bills of exchange;
c) define cheques;
d) distinguish between promissory notes and cheques.
Negotiable Instruments Act - Legal Environment of Business - Business Law - ...manumelwin
The word ‘negotiable’ means transferable by delivery and instrument means a written document by which a right is created in favorable of some person. The term negotiable instrument therefore literally means a document transferable by delivery.
A cheque is an order by the customer of a bank directing his banker to pay on demand, the specified amount, to the order of person named therein or to the bearer
According to SEC. 6 of the Negotiable Instruments Act, 1881, the term cheque is defined as “a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.”
A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date
Sec. 4 of the Negotiable Instruments Act, “A promissory note is an instrument in writing containing an unconditional order, signed by the maker, to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.”
A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand at some point in the future.
According to Sec.5 of the Negotiable Instruments Act, 1881, “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 bearer of the instrument.
AIS 2102 Introduction to Negotiable InstrumentsPreeti Sikder
Learning Outcome: After completion of this lesson, the students will be able to -
a) define negotiable instruments
b) describe the characteristics of negotiable instruments under the Negotiable Instruments Act, 1881
NEGOTIABLE INSTRUMENTS ACT, 1881
STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Meaning of Negotiable Instruments
1.3 Characteristics of a negotiable instrument
1.4 Presumptions as to negotiable instrument
1.5 Types of negotiable Instrument
1.5.1 Promissory notes
1.5.2 Bill of exchange
1.5.3 Cheques
1.5.4 Hundis
1.6 Parties to negotiable instruments
1.6.1 Parties to Bill of Exchange
1.6.2 Parties to a Promissory Note
1.6.3 Parties to a Cheque
1.7 Negotiation
1.7.1 Modes of negotiation
1.8 Assignment
1.8.1 Negotiation and Assignment Distinguished
1.8.2 Importance of delivery in negotiation
1.9 Endorsement
1.10 Instruments without Consideration
1.11 Holder in Due Course
Negotiable instruments are documents that promise a specific amount of money to the payee. The document includes the payee’s name as well as the amount to be discharged to him.
To know more about it, click on the link given below:
https://efinancemanagement.com/financial-management/negotiable-instrument
AIS 2102 Introduction to Negotiable InstrumentsPreeti Sikder
Learning Outcome: After completion of this lesson, the students will be able to -
a) define negotiable instruments
b) describe the characteristics of negotiable instruments under the Negotiable Instruments Act, 1881
NEGOTIABLE INSTRUMENTS ACT, 1881
STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Meaning of Negotiable Instruments
1.3 Characteristics of a negotiable instrument
1.4 Presumptions as to negotiable instrument
1.5 Types of negotiable Instrument
1.5.1 Promissory notes
1.5.2 Bill of exchange
1.5.3 Cheques
1.5.4 Hundis
1.6 Parties to negotiable instruments
1.6.1 Parties to Bill of Exchange
1.6.2 Parties to a Promissory Note
1.6.3 Parties to a Cheque
1.7 Negotiation
1.7.1 Modes of negotiation
1.8 Assignment
1.8.1 Negotiation and Assignment Distinguished
1.8.2 Importance of delivery in negotiation
1.9 Endorsement
1.10 Instruments without Consideration
1.11 Holder in Due Course
Negotiable instruments are documents that promise a specific amount of money to the payee. The document includes the payee’s name as well as the amount to be discharged to him.
To know more about it, click on the link given below:
https://efinancemanagement.com/financial-management/negotiable-instrument
5. The Negotiable Instrument Act, 1881 Promissory Notes Definition: Section 4 defines a promissory notes as under: “A ‘promissory note’ is an instrument in writing (not being a bank-note or a currency-note), 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 bearer of the instrument.” Essentials Characteristics of a Promissory Note All kinds of negotiable instruments, including a promissory note, must be in writing The instrument must contain an express or unconditional promise to pay
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10. The Negotiable Instrument Act, 1881 Endorsements The Negotiable Instrument act of 1881 defines endorsement as "when the maker or the holder of the Negotiable Instrument. signs the same otherwise that as maker for the purpose of negotiation on the back or on the face thereof or on a slip of paper annexed there to or so sign for the same purpose a stamp paper intended to be completed as an negotiable instrument, he is said to have endorsed the same & he is called a endorser A-person who endorses a negotiable instrument is endorser. A person in whose favour endorsement is made is called endorsee. & the act of signing a negotiable instrument for the purpose of negotiation is called endorsement.
