1. Chapter 5-
Negotiable Instruments

2. Negotiability
 Free Transferability
 Good Title free from
the defective title of
transferor
 Goodfaith
 Obtained for Value
 Holder need not
prove the above-they
are presumed to exist

3. Transferabili
ty &
Negotiability
 Nature of
Negotiable
Instruments
-Demand or
Time
Instruments
-Order or
Bearer
Instruments

4. Types of Negotiable
Instruments
 Negotiable by Law
-Bill of Exchange
-Cheque
-Promissory Note
 Negotiable by Usage
-Bank Draft
-Dividend Warrant
-Interest Warrant
-Certificate of Deposit
-Commercial paper

5.  Writing  Certain Drawee
 Order  Certain Amount
 Unconditional order  Payment of Money
 Signature of Maker  Nature of Instrument
Bill of Exchange:
Definition , Features &

6. Cheque: Definition , Features &
Specimen
 Features of a Bill of Exchange  Other Features
-writing, order to pay, payment of -drawn on a banker
money, signature of maker, -payable only on
certain amount, bearer or order demand

7. Differences Between a Bill of Exchange
and a Cheque
 Drawee  Notice of Dishonour
 Nature  Legal Bar
 Form  Statutory Protection
 Acceptance  Countermanding
Payment
 Days of Grace
 Death-Insolvency of
Drawer

8. Promissory Note
 Definition
 Essential
Features
 Specimen

9. Crossing of Cheques
 Meaning of Crossing  Account Payee Crossing
 Types of Crossing:  Not Negotiable Crossing
General Crossing and  Persons Authorised to
Special Crossing Cross Cheques
 Examples of Crossing  Cancellation of Crossing

10. Endorsement
 Meaning
 Types of Endorsement: Blank, Full,
Restrictive, Conditional, Sans
Recourse,Conditional,Facultative & Sans
Frais
 Regularity of Endorsement

11. THANK YOU