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Sunday, 17 November 2019

Inland Instruments

Inland instruments 

             A promissory note, Bill of  exchange, or Cheque drawn or made in India and made payable in or drawn upon any person resident in India shall be deemed to be an inland instrument

1. Promissory note

       Section 4 of Negotiable Instrument Act 1881  A promissory note is an instrument in writing  ( note being a bank note or a currency note ) containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of certain person or to the bearer of the instrument 

2. Bill of Exchange 

          Section 5 of Negotiable Instrument Act 1881 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

3.  Cheque

           A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand

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