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c.law 3

c.law 3

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Published by Hikmah Edi

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Published by: Hikmah Edi on Jun 28, 2010
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06/27/2010

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y
 
NUR HIKMAH EDI(DIAWEF09070006)
y
 
FARAH NADZIRAH MOHD AZNOOR(DIAWEF09070004)
 
DEFINATION OF NEGOTIABLE INSTRUMENTS
=negotible instruments are a class of document used in commercial andfinancial transaction=It is a form of transfer of property (owership) from one person to another in adocument evidencing a contractual obligation to pray money.Section 13 Act 1949.Consent.Two or more person are said to consent when they agree upon the same thingin the same sense.
CHARACTERISTIC OF NEGOTIABLE INSTRUMENTS.
(1)
FREE TRANSFERABILITY:
A negotiable instrument may be transferred bydelivery if it is a bearer instrument or by endorsement and delivery if it isan instrument payable to order.(2)
TITLE TO TRANSFEREE:
The transferee, who takes the instrument
bona fide
and for valuable consideration, obtains a good title despite any defects in thetitle of the transferor.(3)
ENTITLEMENT TO SUE :
The holder can sue in his own name.(4)
CONSIDERATION :
That every negotiable instrument is made or drawn fora consideration. Thus, this need not necessarily be mentioned
 
EXAMPLES OF NEGOTIABLE INSTRUMENTS.
BILL OF EXCHANGE
> Is a form a written promise that the person who takes. The bill will be paidthe amount state in the bill when he presents it at the proper place & time.
CHEQUE
 > Is a bill of exchange drawn on a banker payable on demand
.
PROMISSORY NOTE
 > Is a documents which contain a promise by a maker that he will pay a certainsome of money.
BANKERS DRAFT
 > Are issued by a bank to customers of good standing on request and againspayment by the customer
TRESURY BILL
> Is a promissory note issued by the government to raise short term loan.
SHARE WARRANT
 > Where share in a public company are fully paid up. The company may issue awarrant where the bearer is entitled to the shares.
DIVIDEN WARRANT
 > Refer to the profit.
DEBENTURE
 > Loan agreement
TRAVELERS CHEQUE
 > Is a cheque that enable the holder to draw cash on it.

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