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    Negotiable Instrument

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    Nishant Kakhani
    This document discusses the evolution and types of negotiable instruments. It defines negotiable instruments according to Indian law and outlines their key features. The three main types - promissory notes, bills of exchange, and cheques - are described in terms of their essential elements. Causes for dishonor of cheques and bills of exchange are also provided. Finally, it states how negotiable instruments connect global trade by allowing individuals to trade freely with legal proof of transactions.

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    Negotiable Instrument

    Uploaded by

    Nishant Kakhani
    45 views10 pages
    This document discusses the evolution and types of negotiable instruments. It defines negotiable instruments according to Indian law and outlines their key features. The three main types - promissory notes, bills of exchange, and cheques - are described in terms of their essential elements. Causes for dishonor of cheques and bills of exchange are also provided. Finally, it states how negotiable instruments connect global trade by allowing individuals to trade freely with legal proof of transactions.

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    This document discusses the evolution and types of negotiable instruments. It defines negotiable instruments according to Indian law and outlines their key features. The three main types - promissory notes, bills of exchange, and cheques - are described in terms of their essential elements. Causes for dishonor of cheques and bills of exchange are also provided. Finally, it states how negotiable instruments connect global trade by allowing individuals to trade freely with legal proof of transactions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    45 views10 pages

    Negotiable Instrument

    Uploaded by

    Nishant Kakhani
    This document discusses the evolution and types of negotiable instruments. It defines negotiable instruments according to Indian law and outlines their key features. The three main types - promissory notes, bills of exchange, and cheques - are described in terms of their essential elements. Causes for dishonor of cheques and bills of exchange are also provided. Finally, it states how negotiable instruments connect global trade by allowing individuals to trade freely with legal proof of transactions.

    Copyright:

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    of 10

    NEGOTIABLE

    INSTRUMENTS

    Abhishek Jain 104102

    Nikita Goyal 104128

    Nishant Kakhani 104133

    Niyati Bhatt 104136

    Pooja Kanani 104138

    Punit Agarval 104140


    EVOLUTION OF NEGOTIABLE
    INSTRUMENTS

    Pastoral
    Pastoral
    &Agricultural
    &Agricultural • Barter System
    stage
    stage

    Complex
    system, Handicrafts • Money as a
    Confusion, &Guild
    slow growth stage medium of trade

    Domestic • Growth of Economy


    &Factory & Commerce
    stage • GLOBALIZATION.
    NEGOTIABLE INSTRUMENTS
    Definition  

    • According to Section 13 of the


    Negotiable Instruments Act, 1881, a
    negotiable instrument means
    “promissory note, bill of exchange, or
    cheque, payable either to order or to
    bearer”.
    FEATURES OF NEGOTIABLE INSTRUMENTS

    Freely Transferable Payee must be a certain


    Person
    Absolute Title Signature a must.

    In Writing Certain Time

    Unconditional Delivery Essential

    Certain Sum Stamping is Mandatory.


    TYPES OF NEGOTIABLE INSTRUMENTS
    Promissory Note
    Essential Elements
    • In writing, signed,
    stamped
    • Unconditional promise to
    pay
    • Money only
    • Certain party
    • On demand or certain
    date
    • Certain sum
    • Parties – Drawer, Payee
    TYPES OF NEGOTIABLE
    INSTRUMENTS
    Bill of Exchange Essential Elements
    • Writing, signed, accepted,
    stamped
    • Unconditional order to pay
    • Money only
    • Certain party
    • Certain sum
    • Parties – Drawer, Drawee
    & Payee
    TYPES OF NEGOTIABLE INSTRUMENTS

    CHEQUES Essential Elements

    • Writing, signed
    • Unconditional order
    • Issued by specified
    banker, certain payee
    • On demand
    • Certain amount
    • Must bear a date
    DISHONOR OF NEGOTIABLE INSTRUMENTS

    CHEQUE BILLS OF EXCHANGE


    • Insufficient balance. • Non-acceptance by
    Drawee.
    • Invalid Signature.
    • Drawee does not accept within
    • Specific Reasons eg “a/c 24 hrs
    closed, stopped payment”. • Drawee not entitled to accept.
    • Drawee is a fake person, or
    • Cancellation on cheques. disappears.
    • Tampered cheques. • Bill is conditional.
    • Not signed by all
    • When “payable at par” is
    not mentioned for drawees(in case of
    outstation cheques. partnership)
    • Non payment by Drawee
    at maturity
    CONNECTING GLOBALLY

     Individual Feels Free


    To Trade Globally.

     Smooth Flow of Trade.

     Negotiable Instruments
    As Legal Proof

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