Business and Environment Laws: Negotiable Instrument Act 1881 MBA Sem:3
Business and Environment Laws: Negotiable Instrument Act 1881 MBA Sem:3
Business and Environment Laws: Negotiable Instrument Act 1881 MBA Sem:3
Stamp
Accepted
(signed) (Signed)
Rohit Amit
1/04/2018 196-B,Navrang pura
73-B-Palanpur Ahmedabad
Gujarat To
Rohit
73-B-Palanpur
Gujarat
Essentials Of Bill Of Exchange
• In writing
• It is an order
• Unconditional
• Signature
• Three parties
• Fixed sum
• Payable in money
• Parties must be certain
• Stamped
• Place and date
• Dishonour of Bill:- When the drawee is not
able to make payment on the date of maturity
of a bill, a bill is said to be dishonoured. When
the bill is dishonourd, a notice is given to all
parties that are involved.
Cheque
Section 6 of the Act defines:-
“A cheque is a bill of exchange drawn on a
specified banker, and not expressed to be
payable otherwise than on demand”.
Essentials of cheque
• Written
• Signature by the drawer
• Unconditional order
• Drawn on a bank
• Payable only in money
• Payable on demand
• May be electronic form
• Three parties
Parties to cheque
• Drawer: The person who draws the cheque.