2 Negotiable Instrument

NEGOTIABLE INSTRUMENTS Presented by: By A3

Abrar Ahmad Ansari 1

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This presentation will make you familiar about

 Definition

of Negotiable

Instrument  Characteristics of Negotiable Instrument  Types of Negotiable Instrument By A3

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DEFINITION 

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In general meaning “Negotiable” means “transferable from one person to another in return for consideration” “Instrument” means a written document by which a right is created in favor of some By A3

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The term “Negotiable Instrument” as such is not defined in the Negotiable Instrument act. Sec 13, however, says that a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer” as it is, says that a negotiable instrument ‘means’ and not ‘means and includes’. By A3 Therefore, any other instrument

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According to Justice Willis “One property in which is acquired by anyone who takes it bona fide and for value notwithstanding any defect of title in the person from whom he took it”. By A3

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Characteristics Of Negotiable Instrument  

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Freely transferable Title of holder free from all defects Recovery

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Presumptions (Under Sec. 118 and 119) Consideration Date Time of the acceptance Time of transfer Order of endorsement Stamps Holder presumed to be a holder in due course By A3

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Types of Negotiable Instrument  Negotiable

by Statute, or

 Negotiable

by Custom or Usage

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Negotiable by Statute The Negotiable Act mentions only three kinds of Negotiable Instrument (Under Section 13). These are • Promissory Notes • Bill of Exchange, and • Cheque By A3

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Negotiable by Custom or Usage 

There are certain other instruments which have acquired the characteristics of negotiability by the usage or custom of trade.

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