NEGOTIABLE INSTRUMENTS ACT‚1881 Definition of a Negotiable Instrument. The law relating to negotiable instruments is contained in the Negotiable Instruments Act‚ 1881. It is an Act to define and amend the law relating to promissory notes‚ bills of exchange and cheques. The Act does not affect the custom or local usage relating to an instrument in oriental language i.e.‚ a Hundi. The term "negotiable instrument" means a document transferable from one person to another. However the Act
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demand‚ or at a fixed or determinable future time Supposed to be drawn against previous deposits of funds Need not be drawn against a deposit Need not be presented foe acceptance Required to be present for acceptance in certain cases Ordinarily intended for immediate payment For circulation as an instrument of credit The death of the drawer of a check with the knowledge of the bank revokes the authority of the bank to pay The death of the drawer of an ordinary bill does not revoke the authority of
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Negotiable instrument From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search A negotiable instrument is a document contemplated by a contract‚ warranting (1) the payment of money‚ the promise of order for conveyance of which is unconditional; and‚ (2) which specifies or describes the payee‚ who is designated on and memorialized by the instrument and which is capable of change through transfer by valid negotiation of the instrument. As payment of money is promised subsequently‚ the
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Examples of negotiable instruments A commercial paper is an instrument which embodies contractual rights‚ and the possession of the instrument is required to enforce those rights that are contained in it Although negotiable instruments (eg bills‚ cheques‚ promissory notes‚ certain bearer debentures‚ bonds and share warrants) are categorised as commercial paper‚ not all commercial papers are negotiable instruments. Examples of commercial papers which are not negotiable instruments include bills of
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FAMOUS CASES ON NEGOTIABLE INSTRUMENTS ACT* LIABILITY OF PAYING BANKER WHEN CUSTOMER’S SIGNATURE ON CHEQUE IS FORGED 1. When the customer’s signature on the cheque is forged there is no mandate to the bank to pay. As such a banker is not entitled to debit the customer’s account on such forged cheque. In Canara Bank vs. Canara Sales Corporation and Others [(1987)2 Supreme Court Cases 666] the company has a current account with the bank which was operated by the Company’s Managing Director
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CPA Regulation Negotiable Instruments and Secured Transactions Negotiable Instruments and Secured Transactions What is a note and who are the parties to a note? © 2011 HOCK international 91 A note is a written promise to pay money. Notes are different from drafts in that notes are a promise to pay. If there is any doubt whether a document is a note or a draft‚ the holder of the document can decide what it is. There are two parties involved in a note. 1) The Issuer (Maker) is
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Table of Contents EVOLUTION OF TRADE AND COMMERCE LEADING TO THE INTRODUCTION 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: CERTAIN SURPLUS OF WEALTH CERTAIN PROVISION FOR COMMUNICATION Both of which are essential for growth of commerce. Unless there is a surplus of wealth and provision for communication
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The Negotiable Instrument Act 1881 Compiled By Neelakshi Jaidka OBJECTIVES After reading this lesson‚ you should be able to- • Understand meaning‚ essential characteristics and types of negotiable instruments; • Describe the meaning and marketing of cheques‚ crossing of cheques and cancellation of crossing of a cheque; • Explain capacity and liability parties to a negotiable instruments; and • Understand various provisions of negotiable instrument Act‚ 1881 regarding negotiation‚ assignment
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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
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NEGOTIABLE INSTRUMENTS LAW DEFINITIONS: 1) PROMISORY NOTE – It is an unconditional promise in writing made by one person to another‚ signed by the maker‚ engaging to pay on demand‚ or at a fixed or determinable future time‚ a sum certain in money‚ to order or to bearer. (Sec. 184‚ NIL) 2) BILL OF EXCHANGE – It is an unconditional order in writing‚ addressed by one person to another‚ signed by the person giving it‚ requiring the person to whom it is addressed‚ to pay on demand‚ or a fixed or determinable
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