Main reasons for dishonoring the cheque
Stop payment made by the drawer. Notice of the customer?s death Notice of the customer?s insanity Notice of the customer?s bankruptcy. Knowledge of any defect in the title of the person presenting the...
View ArticleNegotiation or endorsement of cheque
An endorsement is the signature of the drawer or holder of a negotiable instrument for purpose of negotiation. According to negotiable instrument act section (15) 1881, ?when the maker or holder of a...
View ArticleDistinguish between Cheque and bill of exchange
Bill of exchange Cheque 1. A bill of exchange may be drawn on any person, and the person need not be necessarily a banker. 1. A Cheque is a bill of exchange drawn on a specified banker. 2. A bill of...
View ArticleCauses of popularity of cheque
Cheque is an important bill of exchange. It makes the transactions safer, easier, and popular. The followings are the importance of cheque given below- 1. More safety: Cash transaction is always risky....
View ArticleObjective of crossing on Cheque
The main object or purpose of crossing is to ensure that the money should be transmitted safely through the cheque and the amount of the cheque should reach the hands of the rightful owner. In case it...
View ArticleImpact of crossing on Cheque
Crossing serves the purpose of direction to the bank only or to a particular bank, as the case may. Crossing may be written, stamped or printed. Whenever two parallel transverse lines appear on the...
View ArticleMethods of crossing on Cheque
Crossing may be general, special, restrictive or double. These are discussed below- General crossing: Where a cheque bears across its face two transverse parallel lines with or without any words, it is...
View ArticleWho Can Cross a Cheque
Drawee of the cheque can cross a cheque generally or specially. The holder of a cheque may cross it generally or specially, if it is uncrossed or may cross it specially if it is crossed generally or...
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