Some definition of the Negotiable Instruments Act, 1881

Some definition of the Negotiable Instruments Act, 1881

Introduction:

A transferable, written  document that promises to pay the bearer a sum of money at a future date or on demand. Examples include checks, bills of exchange, and promissory notes.

Definition of Negotiable instrument:

A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer (section-13|1).

Definition of Drawer/Drawee/Payee:

The maker of a bill of exchange or cheque is called the Drawer the person thereby directed to pay is called the Drawee and the person to whom the payment is to be made is called the payee.

Definition of promissory note:

The term Promissory note has been defined under Section 4 of the Negotiable   Instruments Act. A "promissory note" is an instrument in writing containing an unconditional promise by one person (the maker), to pay a certain sum of money to another person (the payee) on demand or at a specified future time.

Definition of bill of exchange:

The term bill of exchange has been defined under Section 5 of the Negotiable   Instruments Act.  A "bill of exchange" is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.