Revision 1.what is a negotiable instrument A negotiable instrument is an instrument (document) in writing which is freely transferable from one person to another by mere delivery or by delivery or indorsement. 2. According to section 13 there are 3 kinds of NI i) promissory note( sec 4) ii) bills of exchange (sec 5) iii) cheque (sec 6 ) 4. Essential characteristics of NI a) It is freely transferable from one person to another b) It must be in writing c) it must be signed d) it must be stamped e) it must contain unconditional promise or order to pay f) the promise or order to pay must be money only g) the amount payable must be certain h) the drawer , the drawee and payeee must be certain i) It should be delivered. Mere drawing such instrument does not incur or create any liability j) Holder's title must be free from defect 5. Promissory note Section 4 :- A promissory note is an instrument in writing ( not being a bank note or currency note) containing an unconditional undertaking signed by the maker To pay a certain some of money only to or to the order of certain person or to the bearer of the instruments. Essential characteristics a) it must be in writing b) it must express a promise to pay. Mere acknowledgement of debt is insufficient c) it must be unconditional and definite . However it can be subject to those condition which are bound to happen d) it must be signed e) it must be stamped properly in accordance with Indian stamp act f) the amount payable must be certain g) the drawer and the payee must be certain . According to section 31 of RBI Act , a promissory note cannot be made payable to bearer h) the promise must be to pay money only 6. Bills of exchange Section 5 :- A bills of exchange is an instrument in writing containing 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 a certain person or to the bearer of the instrument Essential characteristics a) it must be in writing b) it must express order to pay c) it must be signed d) it must be stamped e) it must be unconditional and definite f) the amount payable must be certain g) the drawer , the drawee , the payee must be certain. It is not necessary there must be three parties however one party can act role of two .but there must be two distinct parties in any cases Section 31 of RBI Act . A bills of exchange cannot be made payable to bearer on demand. h) should contain order to pay money only
Ek doubt ha promissory note ki definition me likha ha ki bearer of the instrument ko pay ho jata ha lekin wahi characteristics me likha ha ki bearer ko payable nahi kr skte
@@TanuGour25 haa wo sirf definition me he likha h pr baad me explain Kiya hai na ki as per section 31 of RBI Act promissory note bearer ko issue nhi hoskta tha Like not sure but Aisa hoskta h coz NI act 1881 ka h toh tab bearer allowed fir jab Indian currency issue hona chalu hua like after RBI jo ki 1934 me hua toh to preserve currency note ki value bearer promissory note band krdiya ho
a negotiable instrument is an instrument or document whichis freely transferable to one person to another person by delivery or by mere indorsement 3 kind of ni 1pro note 2 boe 3 chaque
Sir I feel so grateful and privileged to have you as a teacher. You were the mentor in class 11,12 and by the grace of God in CA Foundation also. I genuinely pray for your well being.❤
sir note p jo likha h uske niche ek signature bhi he jo governer k hai mtlb promise governer kar raha h toh hum ye keh sakte he ki hum government k behalf p agle ko paise de rahe he or agla government k behalf par paisa le raha h so govt hi paise le rahi h or govt hi paise de rahi he bs kaam hum karrahe he iss hisaab se toh hume govt se commission bhi charge karni cahiye
