CHARACTERISTICS OF NEGOTIABLE INSTRUMENTS:-
Code 460 mercantile law has great importance
for the students because this subject gives an information about the laws of contracts,
negotiable instruments, sale contracts, Bailment laws etc.. This is solved
assignment 1 for this code 460.
A negotiable instrument has
following special characteristics as compared to any other document evidencing
a contractual debt. A negotiable instrument may be transferred by mere delivery
without the necessity for formal assignment. The only exception to this rule is
represented by bills of exchange payable to order which in addition to delivery
also require an endorsement.
Where a negotiable instrument is
properly transferred or negotiable the transferee, provided that he has given
valuable consideration for it acquires a good title irrespective of the quality
of the contractual right is “subject to equities” a negotiable instrument is
transferred free from equities in that the title of the holder for value does
not depend on the title of his predecessor.
TYPE OF NEGOTIABLE INSTRUMENTS
Under section 13 of the negotiable
instrument act 1881, a negotiable instrument includes.
(i)
A Bill of exchange
(ii)
A promissory note or
(iii) A Cheque Payable either to
order or bearer.
Although under this section only
above three types of negotiable instruments are mentioned but it has been
ascertained from the cases of law that if an instrument satisfies the follow
two conditions, it can be treated as a negotiable instruments.
(i)
If it is such a form which
entitles the holder to sue in his own name and
(ii)
If it is transferable.
FOR COMPLETE SOLUTION OF FIRST ASSIGNMENT : PRESS CLIKC
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