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Section 13 - Negotiable Instrument : Negotiable Instruments Act 1881

 

 

What is Negotiable Instrument? Negotiable Instrument is defined defined under Section 13 of Negotiable Instruments Act 1881

Section 13 of Negotiable Instruments Act 1881: "Negotiable Instrument"

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

Explanation 1 : A promissory note, bill of exchange or cheque is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it shall not be transferable.

Explanation 2 : A promissory note, bill of exchange or cheque is payable to bearer which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank.

Explanation 3 : Where a promissory note, bill of exchange or cheque, either originally or by endorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.

 

(2) A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees

 

Negotiable Instruments Act 1881

CHAPTER II NOTES, BILLS AND CHEQUES

Section 4 - Promissory Note

Section 5 - Bill of exchange

Section 6 - Cheque

Section 7 - Drawer, Drawee

 

 

Section 8 - Holder

Section 9 - Holder in Due Course

Section 10 - Payment in due Course

Section 11 - Inland Instrument

Section 12 - Foreign Instrument

 

 

Section 13 - Negotiable Instrument

Section 14 - Negotiation

Section 15 - Endorsement

Section 16 - Endorsement in blank and in full endorsee

 

 

Section 17 - Ambiguous instruments

Section 18 - Where amount is stated differently in figures and words

Section 19 - Instruments payable on demand

Section 20 - Inchoate stamped instruments

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