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Negotiable Instruments Law Notes

Meaning and Kinds of Negotiable Instruments

Meaning of Negotiable Instruments A negotiable instrument is a written document that represents a promise to pay a specific amount of money to the bearer...

Promissory Note under Negotiable Instruments Act

A promissory note is a written agreement between two parties. In this agreement, one party (called the maker) promises to pay a specific amount...

Bill of Exchange under Negotiable Instruments Act

A bill of exchange is a negotiable instrument that serves as a written order from one party, known as the drawer, to another party,...

Cheque under Negotiable Instruments Act

Definition A cheque is a written instrument that contains an unconditional order by the account holder (known as the drawer) to a bank or financial...

Indorsement under Negotiable Instruments Act

Meaning of Indorsement Indorsement refers to the act of signing or endorsing a negotiable instrument, such as a promissory note, bill of exchange, or cheque....

Kinds of Indorsement

Blank Indorsement In a blank indorsement, the indorser signs their name on the back of the instrument without specifying the name of the indorsee (the...

What is Crossing of Cheques

Crossing of cheques is a practice in banking where two parallel lines are drawn across the face of a cheque. The purpose of crossing...

Object of Crossing a Cheque

The object of crossing a cheque is to enhance the security and control of the payment process. Crossing serves several important objectives, including: Prevention of...

Kinds of Crossing Cheques

General Crossing When two parallel lines are drawn across the face of a cheque without any additional words or instructions, it is considered a general...

Rights and Duties of Paying Banker

The paying banker, also known as the drawee bank, refers to the bank that is responsible for making payment on a cheque or honoring...

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