{"id":789,"date":"2020-05-18T18:05:32","date_gmt":"2020-05-18T12:35:32","guid":{"rendered":"https:\/\/vdtc.co.in\/?p=789"},"modified":"2020-05-18T18:05:33","modified_gmt":"2020-05-18T12:35:33","slug":"the-negotiable-instruments","status":"publish","type":"post","link":"https:\/\/vdtc.co.in\/?p=789","title":{"rendered":"The Negotiable Instruments"},"content":{"rendered":"\n<p>IT is a written order to pay a fixed sum of money on demand or at a certain time.<\/p>\n\n\n\n<p>&nbsp;A negotiable instrument can be easily transferred from one person to another. Once the instrument is transferred, the holder gets a full legal title to the instrument.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Features of Negotiable Instruments:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A written instrument with signature: A negotiable instrument is a written document and is recognized as complete and valid only when it is duly signed.<\/li><li>Negotiable Instrument made or drawn for consideration: It is assumed by the law that every negotiable instrument is made or drawn for consideration.<\/li><li>Transfer\/negotiation by endorsement\/ delivery<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Promissory Note:<\/strong><\/h3>\n\n\n\n<p>Basic Elements of a Promissory Note:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Must be in writing.<\/li><li>Agree to pay: The instrument must contain an express promise to pay.<\/li><li>Definite and unconditional: The promisee to pay must be definite and unconditional. If it is uncertain or conditional, the instrument is void.<\/li><li>Signature by the maker: The instrument must be signed by the maker, otherwise, it is incomplete and of no effect.<\/li><li>Various parties: The instrument must point out who the maker is and who the payee is.<\/li><li>Promise to pay money only: The payment must be in the legal tender currency of India.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>For Example:<\/strong><\/h3>\n\n\n\n<p>State, giving reasons, whether the following instruments are valid promissory notes:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>A promises to pay M, by a promissory note, a sum of ` 5,000, fifteen days after the death of B.<\/li><li>A promises to pay M, by a promissory note, ` 5000 and all other sums, which shall be due.<\/li><\/ol>\n\n\n\n<p style=\"font-size:17px\"><strong>Solution:-<\/strong><\/p>\n\n\n\n<p>In the first case, the payment is to be made 15 days after the death of B. Therefore the instrument is valid.<\/p>\n\n\n\n<p>In the second case- the sum paid is not certain.&nbsp;<\/p>\n\n\n\n<p>Hence the Promissory Note is not valid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bill of Exchange:<\/strong><\/h3>\n\n\n\n<p>The Valid acceptance of a Bill of Exchange:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Acceptance must be written.<\/li><li>Acceptance must be signed: A minor signature would be adequate for the purpose.&nbsp;<\/li><li>Acceptance must be completed by delivery<\/li><li>Acceptance may be either general or qualified&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cheque:<\/strong><\/h3>\n\n\n\n<p>A \u201ccheque\u201d is a BOE (bill of exchange) drawn by the specified banker and not meant to be payable unless on-demand.<\/p>\n\n\n\n<p>A Cheque shall be signed by the drawer and must include an unconditional order on a specified banker to pay a certain sum of money to or to the bearer of the instrument.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Maturity of a Negotiable Instrument:<\/strong><\/h3>\n\n\n\n<p>The date on which the instrument falls due for payment. A negotiable instrument is allowed to 3 days of grace.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IT is a written order to pay a fixed sum of money on demand or at a certain time. &nbsp;A negotiable instrument can be easily transferred from one person to another. Once the instrument is transferred, the holder gets a full legal title to the instrument. Features of Negotiable Instruments: A written instrument with signature:<\/p>\n<p><span class=\"more-wrapper\"><a class=\"more-link button\" href=\"https:\/\/vdtc.co.in\/?p=789\">Continue reading<\/a><\/span><\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":["post-789","post","type-post","status-publish","format-standard","hentry","category-company-law"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/789"}],"collection":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=789"}],"version-history":[{"count":2,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/789\/revisions"}],"predecessor-version":[{"id":802,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/789\/revisions\/802"}],"wp:attachment":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}