Q) What are the characteristics of negotiable instruments?
Q) What do you understand by term "Negotiable Instruments" ? What are its special characteristics?
Q) Define and explain `Cheque'. What are its essential features ?
Q) Define and explain `Promissory Note'. What are its essential features ?
Q) Define and explain "Bill of Exchange". What are the essential requisites of Bill of Exchange. What is the distinction between Promissory Note and Bill of Exchange ?
Q) What is a cheque ? What is the difference between cheque and bill of exchange ?
Q) Define "drawer" and "drawee". Explain drawer in case of need ?
Q) What do you understand by term "Holder" ? Who can be a holder and who cannot be ?
Q) Explain the term "Holder in due course". What are the rights and powers of "Holder in due course" ?
Q) What is meant by "Negotiation" ? What are different modes of transfer of a negotiable instrument ?
Q) Clearly mention the points of difference between assignability and negotiation ?
[Negotiation means transfer of an instrument from one person to another so as to constitute that person the holder of the instrument (section 14). Assignment means transfer of ownership of a negotiable instrument by means of a written and registered document under the provisions of the Transfer of Property Act.
Negotiation is the process of discussing and reaching an agreement with another party, often involving the exchange of goods, services, or information. Assignment is the transfer of rights, duties, or responsibilities from one person or party to another.]
Q) What do you understand by the term "indorsement of negotiable instrument" ?
Q) What do you understand by the terms "Maturity" and "days of grace" ?
Q) What is the procedure prescribed for calculating maturity of Bill of Exchange payable at stated number of months ?
Q) What is the rule for counting the time when the day of maturity is a holiday ?
Q) Define "Hundi" and distinguish it from "Bill of Exchange".
[ Hundi is a Bill in vernacular language. ]
Q) State the different kinds of Hundis as are in use among the business transactions in India.
Types of Hundis
Darshani- Darshani is a hundi which is payable at sight. It is like a demand bill. It is negotiable. The party can sell them at par, premium, and discount. The holder has to present the darshani for payment within a reasonable time of its receipt. If the drawer faces any loss due to delay in presentation, the holder shall be responsible for it.
Miadi - miadi is something which is payable after a certain time period like a ‘time bill’. Banks generally provide loans for the security of such hundis.
Shahjog - This is a hundi made payable only to a Shah (a respectable person of financial worth and substance in the market, i.e., a known person with good financial reputation). It is freely transferrable. But it is not payable to bearer. In general, it is similar to a crossed cheque.
Namjog - Under this hundi, the amount is payable to the party whose name is on it. Such an instrument is similar to a bill of exchange payable on order.
Dhanijog - ‘Dhani’ in local terms means owner. It is generally like a bearer cheque as the holder of it becomes a holder in due course if he takes it for value.