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A promissory note, bill of exchange or cheque drawn or made in 1[India] and made payable in, or drawn upon any person resident in, 1[India] shall be deemed to be an inland instrument.
What is a negotiable instrument quizlet?
Negotiable Instrument is a signed writing (or record) that contains an unconditional promise to pay an exact amount of money, either on demand or at a specified future date.
How is an instrument considered negotiable?
A negotiable instrument is a signed document that promises a payment to a specified person or assignee. Negotiable instruments are transferable, which allows the recipient to take the funds as cash, then use them as preferred. Examples of negotiable instruments include checks, money orders, and promissory notes.
What is an example of a negotiable instrument?
Examples of negotiable instruments include bank checks, promissory notes, certificates of deposit, and bills of exchange.
What is a negotiable instrument in PDF?
Thus, the term negotiable instruments means a written document transferable by delivery. ing to Section 13 (1) of the. Negotiable Instruments Act, 1881(NI Act), A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
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An instrument to be negotiable must conform to the following requirements: (1) It must be in writing and signed by the maker or drawer; (2) Must contain an unconditional promise or order to pay a sum certain in money; (3) Must be payable on demand, or at a fixed or determinable future time; (4) Must be payable to order
What is 11 the negotiable instrument?
Inland instrument. A promissory note, bill of exchange or cheque drawn or made in India and made payable in, or drawn upon any person resident in, India shall be deemed to be an inland instrument.
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