Documente Academic
Documente Profesional
Documente Cultură
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. Negotiable instruments are often defined in legislation. For example, according to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument is a promissory note, bill of exchange or cheque payable either to order or to bearer. Cheque also includes demand draft [Section 85A]. Negotiable means transferable by delivery, and Instrument means a written document by which a right is created in favour of some person. According to the section 13(1) of the Negotiable Instruments act of 1881, A Negotiable instrument means a promissory note, Bill of exchange or cheque payable either to order or to the bearer. According to Section 13 (a) of the Act, Negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer, whether the word order or bearer appear on the instrument or not. In the words of Justice, Willis, A negotiable instrument is one, the property in which is acquired by anyone who takes it bonafide and for value notwithstanding any defects of the title in the person from whom he took it.
Bill of Exchange: A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay another person a certain sum of money. Cheque: A cheque is a bill of exchange on a specified banker and not expressed to be payable otherwise than on demand. Hundis: Negotiable instruments written in any vernacular language according to the Indian Mercantile common law are called as Hundis.
Acceptance:
3. Documentary credit: Creation of an unconditional and binding promise to pay a bill of exchange, by signing it under the word 'accepted.' Generally, anyone who signs a bill of exchange on which the accepting firm's name is not mentioned in legible characters, is held personally liable for the amount of the bill if it remains unpaid. See also general acceptance and qualified acceptance. 4. Legal: Execution of an official document by an authorized agent or representative of the government. 5. Shipping: Acknowledgment by a consignee of the receipt of a consignment, thus terminating the contract of carriage.