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Business Environment and Law-The Negotiable Instruments Act, 1881

The Negotiable Instruments Act, 1881

   Posted On :  08.05.2018 05:27 am

The law relating to negotiable instruments is primarily contained in the Negotiable Instruments Act, 1881. The word ‘negotiable’ means transferable from one person to another, and the term ‘instrument’ means ‘any written document by which a right is created in favour of some person.’

The Negotiable Instruments Act, 1881

The law relating to negotiable instruments is primarily contained in the Negotiable Instruments Act, 1881. The word ‘negotiable’ means transferable from one person to another, and the term ‘instrument’ means ‘any written document by which a right is created in favour of some person.’ Thus, the negotiable instrument is a document by which rights vested in person can be transferred to another person in accordance with the provisions of the Negotiable Instruments Act, 1881. The Negotiable Instruments Act does not affect the provisions of Sections 31 and 32 of the Reserve Bank of India Act, 1934. But, the following are Not Promissory Notes. Ex. “I promise to pay B Rs. 500 and all other sums which shall be due to him.”

 

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