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BBA
Negotiable instrument means, a promissory note, bill of exchange or cheque payable either to order or to bearer. Definition includes only three documents in negotiable instruments. But in practice, many other documents which meet the basic requirements of a negotiable instruments.
characterized as negotiable instrument either by law or custom and tradition of a trade:1) treasury bill 2) government promissory note 3) dividend warrant 4) share warrant 5) bearer debentures 6) hundies
Transferability
Good title to transferee
Right of holder
Evidence of debt
Legal presumptions
Bill of exchange
Cheque
Promissory note is an instrument, in writing(not being bank note or currency note) containing an unconditional undertaking signed by the maker, to pay certain sum of money only to or to the order of certain person or to bearer of the instrument.
bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay certain sum of money, only to or to the order of certain or to the bearer of the instrument.
is a bill of exchange drawn on a specified banker and not expresses to be payable, otherwise than on demand and it includes the electronic image of truncated cheque and a cheque in electronic form.
holder of a negotiable instrument means any person, entitled in his own name to the possession thereof and to receive or recover, the amount due thereon from the party liable thereto..
course means any person who for the possessor of a negotiable instrument if payable to bearer or payee or indorsee thereof if payable to order before the amount mentioned in it became payable and without sufficient cause to believe that any defect existed in the title of a person from whom derived his title.
HOLDER
Instrument get possessed
on the name of the holder and recover from the party liable to pay Consideration is not necessary Can acquire an instrument after the date of maturity. Get same title as the transferor. Drawer,drawee and transferor are liable to pay
the period of maturity in good faith and for valuable consideration. Consideration is necessary. Have to acquire before the date of maturity. Gets a title better than that of transferor. All parties prior to him are liable to pay.