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.
Tags : Business Environment and Law-The Negotiable Instruments Act, 1881
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