Evolution and Revolution of Negotiable Instruments
As Facilitators for Trade and Commerce
And Ten Years Taking Forward
JINAL JAIKRISHNAN- 33
DEEPA SINGH - 34
DINESH REDDY - 35
SAGAYA ALBERT – 36
BLESSON ANTONY - 37
PRITI YADAV - 38
RITU DEBNATH - 39
NITIN PATIL - 40
Prof. Anant Amdekar
6th February, 2012
2. EVOLUTION OF NEGOTIABLE INSTRUMENTS
3. WHAT ARE NEGOTIABLE INSTRUMENTS
4. NEGOTIABLE INSTRUMENTS ACT, 1881
5. TYPES OF NEGOTIABLE INSTRUMENTS
6. CHARACTERISTICS OF CHEQUE, BILL OF
EXCHANGE AND PROMISSORY NOTE
7. DISTINGUISH BETWEEN
9. SECTION 134 TO 137 OF AN INTERNATIONAL LAW
10. DISHONOUR OF NEGOTIABLE INSTRUMENTS
11. REVOLUTION OF PAYMENT SYSTEMS IN INDIA
12. CURRENT SCENARIO OF NEGOTIABLE INSTRUMENTS
13. TEN YEARS TAKING FORWARD
14. CASE STUDY
The usage of negotiable instruments starts with the evolution of trade and commerce. These instruments are playing a major role in the evolution of trade and commerce as a whole which kept on developing and growing bigger. We came across the different stages through which trade and commerce went:
1. PASTORAL STAGE:
The first stage had to do nothing with money, people lived a nomadic life. Survival by breeding of animals was the main motto.
Business was limited
2. AGRICULTURAL STAGE :
However man learned quickly to grow food for their own need.
3. BARTER SYSTEM:
The demand increased for other commodities as well and thus this was introduced.
This can be termed as the turning point of trade and commerce.
4. HANDICRAFT STAGE:
They started producing specialized products.
5. GUILD STAGE:
The era in which people started to think about development and thus formed groups to protect their rights.
6. FACTORY STAGE:
Then came the stage where technology was introduced and business forms became complex.
This is where the necessity of introducing negotiable instruments was felt.
However it was noted that the growth was very slow and the system was very complex. There were different instruments used to purchase different commodities in different stages. The system of exchange was such that it led to confusion and various complexities. To avoid such confusion and to operate the business activities smoothly negotiable instruments were introduced.
Now as we have come across the term negotiable instruments and why it was evolved, let’s now have a brief knowledge about negotiable instrument.
EVOLUTION OF NEGOTIABLE INSTRUMENTS
The world as a whole has been the “cradle of commerce” because this exchange is not only between individuals but also between peoples and nations. This naturally implies the existence of:
1- CERTAIN SURPLUS OF WEALTH
2- CERTAIN PROVISION FOR COMMUNICATION
Both of which are essential for growth of commerce. Unless there is a surplus of wealth and provision for communication, commerce cannot grow.
In the primitive economic society when each tribe or family produced all that is needed and consumed all that it produced, need of commerce did not and could not arise. Only after the division of labour and consequent development of exchange, commerce began to grow. Once it started growing, it spread its invisible thread throughout the length and breadth of the world leading to its present day complex mechanism.
These stages may be summarized as follows:
1. Non Existence of Commerce:
In the early stage of economic life of man division of labour scarcely existed. Man produced what he needed and consumed all that he produced. Therefore commerce did not exist in this stage.
References: • Business and Corporate Law — N. D. Kapoor
• Smith & Roberson’s Business Law, Fifteenth Edition
• Business Law — Buichandani
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