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Business Environment and Law-The Negotiable Instruments Act, 1881

Requisites Of A Cheque: - Negotiable Instruments Act, 1881

   Posted On :  08.05.2018 05:55 am

Requisites Of A Cheque: - Negotiable Instruments Act, 1881

 Requisites Of A Cheque:
 
 
            Written Instrument. A cheque must be an instrument in writing.
 
            Unconditional Order. A cheque must contain an unconditional order.
 
            On a Specified Banker Only. A cheque must be drawn on a specified banker.
 
            A Certain Sum of Money. The order must be only for the payment of money and that too must be specified.
 
            Payee to be certain. A cheque to be valid must be payable to a certain person.
 
            Payable on Demand. A cheque to be valid must be payable on demand and not otherwise.
 
            Amount of the Cheque. Amount of the cheque must be clearly mentioned.
 
            Dating of Cheques. The drawer of a cheque is expected to date it before it leaves his hands.
 
A cheque hearing an earlier date is ante-dated and the one bearing the later date is called post-dated. In India, a cheque that bears a date earlier than six months is a stale cheque and cannot be claimed for. In England, cheque can remain in circulation for a period of twelve months.

 

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