Negotiable Instrument Definition In Act
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FAQ
Examples of negotiable instruments include bank checks, promissory notes, certificates of deposit, and bills of exchange.
Section 13 of the Negotiable Instruments Act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. Negotiable instruments recognised by statute are: (i) Promissory notes (ii) Bills of exchange (iii) Cheques.
A "Promissory note" is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
India Code: Section Details. A "Promissory note" is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
The Negotiable Instruments Act, 1881 is a significant law that governs the use of negotiable instruments in India. It provides for the regulation of promissory notes, bills of exchange, and cheques. The Act was enacted to provide a uniform legal framework for the use of negotiable instruments in India.