Law Reating to Negotiable Instrument

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  • Topic: Negotiable instrument, Promissory note, Bearer instrument
  • Pages : 22 (5588 words )
  • Download(s) : 259
  • Published : July 4, 2011
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Law Relating To Negotiable Instrument

TABLE OF CONTENTS

Acknowledgement

1. Chapter 1: Introduction

1. Objectives of the study……………...........................………………………6 2. Limitations of the study.................................................................................6 3. Research methodology………………………………………………...........7 2. Chapter 2:Law Relating to Negotiable Instrument

1. Negotiable Instrument………………………….....................…..…………8 2. Parties to Negotiable Instrument...................................................................17 3. Presentment of Negotiable Instrument..........................................................21 4. Negotiation of Negotiable Instrument...........................................................23 5. Dishonor and Discharge of Negotiable Instrument.......................................25

3. Chapter 3: Conclusion..................………………………………………....…...31

Bibliography

INTRODUCTION

Objective of the Study

The main objective of the study is to find and analysis the law relating to negotiable instrument. After reading this report, one should get a general idea and gather knowledge of the different types of Negotiable Instrument, functions and characteristics, parties to negotiable instrument, negotiation of negotiable instrument, dishonor and discharge of negotiable instrument.

Limitations of the Study

While gathering data and information about the study topic for the preparation of the report, our group had to face few difficulties and limitations. First of all, the main difficulty that we had to face was the time constraints. Since this semester is shorter than the usual semesters, time was not on our side. We had to collect data and information and prepare the report within 3 weeks. It was even more difficult for some of the members in our groups as they had to prepare other reports for other subjects.

Research Methodology

Data Collection Techniques

In order to prepare this report on the Law Relating to Negotiable Instrument, we used different techniques for the collection of data and others relevant information. The information and data that has been provided in this report can be classified as both primary and secondary data.

Sources of Data Collection

All information has been collected from the internet, law related books, websites that provides relevant information about Negotiable instrument.

2.1 NEGOTIABLE INSTRUMENT

Negotiable Instrument:

The laws regarding negotiable instruments are laws that define promissory note, bill of exchange, cheque, foreign instrument and negotiable instrument. A negotiable instrument is a specialized type of "contract" for the payment of money that is unconditional and capable of transfer by negotiation.

As commerce and trade developed, people moved beyond exclusive reliance on barter to the use of money and then to the use of substitutes for money. The term negotiable instrument encompasses such substitutes in common use today as checks, promissory notes, and certificates of deposit. History discloses that every civilization that engaged to an appreciable extent in commerce used some form of negotiable instrument. Probably the oldest negotiable instrument used in the carrying on of trade is the promissory note. Archaeologists found a promissory note made payable to bearer that dated from about 2100 BC. The merchants of Europe used negotiable instrument, which under the law merchant was negotiable in the 13th and 14th centuries. Negotiable instrument does not appear to have been used in England until about 1600 AD.

The full explanation of the term negotiable instrument can be explained in this manner. Transferability is meant by the term “Negotiable” and a written document is referred to the instrument. So it basically means a document which certifies the transferability of ownership. So a truly valid negotiable instrument means the transfer and the proof...
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