Negotiable Instrument Act 1881

Negotiable instrument act 1881
Types of negotiable instrument:-
Sec.13 of the Negotiable Instrument Act states “A negotiable instrument means a promissory note, bill of exchange or a cheque payable either to order or to bearer”.
1) Promissory Note:- Sec. 4 of the act “A promissory note is an instrument in writing containing an unconditional undertaking, signed by the maker, to buy a certain sum of money to , or to the order of a certain person”.
* Parties to a promissory note:-
1. Maker
2. Payee - in whose favour the promissory note is made.
2) Bills of exchange:- “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 instrument.
*Parties to the BOE :-
a) Drawer
b) Drawee
c) Payee
* Types of bills :-
a. Inland bill
b. Foreign bill
c. Accommodation bill
d. Inchoate bill
e. Undated bill
f. Ambiguous bill
g. Fictitious bill
h. Documentary bill
i. Banker’s draft
3) Cheque:- sec.6 “A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand “.
A cheque is an unconditional order in writing drawn by a customer on his bank, requesting the specify bank to pay on demand a certain sum of money to a person named in the cheque or to the bearer or to the order of a stated person.
Mr R Saharan
Miss S Singh
9468327678
The Scholar