Date post: | 26-Sep-2015 |
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Presented by
Sathyaraj B.com., BL.,
*
Nature and Requisites of Negotiable Instruments
Transfer of Negotiable Instruments
Holder in Due Course special rule for cheques and Banks
Discharge of Negotiable Instruments
Promissory Note
Bill of exchange
Cheque
Section 4 A Promissory notice is an instrument in writing (not being a bank-note or a currency note) containing an unconditional undertaking, singed 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.
Section 5 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.
Freely Transferable
Legally enforceable
Evidence in court of law
Writing
Signed by the maker or Drawer
Unconditional Promise
Order to pay a fixed amount
With or without interest
At a definite time
Example : Death of the Holder
Section 8 Holder The Holder of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.
Any Person who for consideration became the possessor of the Negotiable instrument.
Section 9 Holder in due course means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.
(a). By Cancellation
(b). By Release Giving notice for discharge.
(c). By payment
Section 84 When cheque not duly presented and drawer damaged thereby.Example: cheque should be presented within in validity period
Section 87 Material Alteration