INSTRUMENT MUST SPECIFY DENOMINATION

>      Instruments should express the specific denomination of money when  it is payable in the money of
a foreign country in order that the courts may  be  able  to  ascertain  its  equivalent  value;  otherwise,  it 
is  non-negotiable
 

PAYABLE ON DEMAND OR ON A FIXED OR

DETERMINABLE FUTURE TIME
>      On demand
>      At a fixed or determinable future time
 

WHERE NO YEAR IS SPECIFIED

>      Neither payable on demand or on a fixed or determinable future time
>      Time of payment is not determinable as the year is not stated
 

THE INSTRUMENT MUST BE PAYABLE TO ORDER OR TO

BEARER
>      An  instrument  is  not  negotiable  unless  made  payable  to  a  person  or his order or bearer or
unless words of the similar or equivalent import are used such as assigns or assignees or holder
 

WHERE PAYABLE TO THE ORDER OF BEARER

>      Also negotiable
>      This was held to be payable to order
>      The  payee  of  such  an  instrument  is  the  bearer  and  it  can  only  be negotiated by his
indorsement 
 

WHERE PAYABLE TO A CERTAIN PERSON

>      Where the instrument is payable to a specified person, it’s not payable to order
>      Payable to a certain person or his agent 
>      Where payable to “bearer B”
 

THE DRAWEE MUST BE NAMED

>      Requirement that refers only to bills of exchange
>      Drawee’s name may be omitted and be filled in under implied authority like any other blank
>      An acceptance may supply the omission of the designation
 

IMPORTANCE OF FORMALITIES
>      Essential for the security of the mercantile transactions
>      Distinguish   the   negotiable   instrument   from   the   ordinary   non-transferrable written contract
 

NECESSITY OF COMPLIANCE WITH PROVISIONS

>      Where  the  instrument  doesn’t  conform  with  the  requirements  laid down in Section 1, then it is
not governed by NIL
 

DETERMINATION OF NEGOTIABILITY
>      By the provisions of the NIL, particularly Section 1 thereof
>      By considering the whole of the instrument
>      By what appears on the face of the instrument and not elsewhere