Beruflich Dokumente
Kultur Dokumente
act 1881”
MEANING:-
Promissory Exchequ
notes er bills
Bills of
Share
exchang
warrants
e
Dividend
cheques
warrants
• PAYEE
Specimen
ESSENTIAL ELEMENTS
1) WRITING
2) PROMISE TO PAY
3) DEFINITE & UNCONDITIONAL
4) SIGNED BY THE MAKER
5) CERTAIN SUM OF MONEY
6) PROMISE TO PAY MONEY ONLY
7) BANK NOTE OR CURRENCY NOTE IS NOT A PROMISSARY NOTE
8) CERTAIN PARTIES
9) FORMALITIES LIKE DATE,PLACE,CONSIDERATION ETC.
10) IT MAY BE PAYABLE ON DEMAND OR AFTER A DEFINITE PERIOD OF
TIME
11) IT CANNOT BE MADE PAYABLE TO BEARER ON DEMAND
BILL OF EXCHANGE
According to (Sec.5)
A BILL OF EXCHANGE IS AN
NSTRUMENT IN WRITING
CONTAINIG 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,ACERTAIN PERSON OR
TO THE BEARER OF THE
INSTURMENT.
PARTIES TO BILL OF EXCHANGE
THERE ARE THREE PARTIES TO BILL OF EXCHANGE
THAT ARE :
1) DRAWER
2) DRAWEE
3) PAYEE
SPECIMEN OF BILL OF EXCHANGE
ESSENTIAL ELEMENTS
1) IT MUST BE A WRITTEN DOCUMENT
2) IT MUST CONTAIN AN ORDER TO PAY
3) THE ORDER MUST BE UNCONDITIONAL
4) IT REQUIRE THREE PARTIES,I:E DRAWER,DRAWEE&PAYEE
5) THE PARTIES MUST BE CERTAIN
6) IT MUST BE SIGNED BY THE DRAWER
7) THE SUM PAYABLE MUST BE CERTAIN
8) IT MUST CONTAIN AN ORDER TO PAY MONEY
9) THE FORMALITIES RELATING TO
DATE,PLACE,CONSIDERATION ,NO.
DIFFERENCE BETWEEN
PROMISSORY NOTE BILL OF EXCHANGE
Transfer by Negotiation
-negotiation by delivery
-negotiation by endorsement &delivery
Transfer by Assignment
ENDORSEMENT
“Literal meaning of the term endorsement is writing on
an instrument.”