The Negotiable Instruments Act, 1881

The Negotiable Instruments Act, 1881

1. 1. Negotiable instrument means

   • 1. 1.it means an instrument 2. The property in which is acquired by anyone who take it – a. Bonafide ; and b. For value 3. Notwithstanding any defects in the title of any prior party. 4. In other words, negotiable instruments means an instrument, which confers upon a holder in due course a valid title, notwithstanding any defect in the title of any prior party.
     • MEANING
     • 1. Freely transferable from one person to another 2. transferable indefinitely 3. holder in due course gets a good title 4. a negotiable instrument may name more than one payee jointly or alternatively
       • ESSENTIALS
       • 1. NI was made, accepted and endorsed for consideration 2. NI bearing a date was made or drawn on such date 3. every accepted bill was accepted within a reasonable time after its date and before its maturity. 4. Every transfer of NI act was made before its maturity 5. A lost promissory note or bill was duly stamped 6. The holder of a negotiable instrument is a holder in due course
         • PRESUMPTIONS

2. 2. a promissory note; or

3. 3. bill of exchange; or

4. 4. cheque

5. 5.payable