What is Marking of Cheque ?

A person may not like to part with goods in return for a cheque from a party not well known to him. In such context the banker on whom the cheques is drawn may be asked by the customers to mark the cheques as good for payment. This implies that cheque was drawn in good faith and on funds sufficient to meet it. What is Crossing of Cheque ? A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong hands. Crossing is a popular device for protecting the drawer and payee of a cheque. Both bearer and order cheques can be crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque. Thus, crossing is necessary in order to have safety. Crossed cheques must de presented through the bank only because they are not paid at the counter. Different Types of Crossing 1. General Crossing :Generally, cheques are crossed when 1. There are two transverse parallel lines, marked across its face or 2. The cheque bears an abbreviation "& Co. "between the two parallel lines or 3. The cheque bears the words "Not Negotiable" between the two parallel lines or 4. The cheque bears the words "A/c. Payee" between the two parallel lines. A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and affixing the full signature of drawer. Specimen of General Crossing

2. Special or Restrictive Crossing :When a particular bank's name is written in between the two parallel lines the cheque is said to be specially crossed. Specimen of Special or Restrictive Crossing

In addition to the word bank, the words "A/c. Payee Only", "Not Negotiable" may also be written. The payment of such cheque is not made unless the bank named in crossing is presenting the cheque. The effect of special crossing is that the bank makes payment only to the banker whose name is written in the crossing. Specially crossed cheques are more safe than a generally crossed cheques.

.] (1.] (1.) The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for the buyer. [When Lien is Lost. a contract of sale may be made in writing or by word of mouth. acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.] Where an unpaid seller has made part delivery of the goods. [Lien after Part Delivery. or partly in writing and partly by word of mouth or may be implied from the conduct of the parties. or for the delivery or payment by installments. namely: (a.) By waiver thereof. (c. (2. or one of several drawee not being partners. he may exercise his right of lien on the remainder.) Where the buyer becomes insolvent.) When the buyer or his agent lawfully obtains possession of the goods. (2. (2) Subject to the provisions of any law for the time being in force. unless such part delivery has been made under such circumstances as to show an intent to waive the lien or right of retention. bill of exchange or cheque is said to be dishonored by non-payment when the maker of the note. Section 55. makes default in acceptance upon being duly required to accept the bill. or the acceptance is qualified the bill may be treated as dishonored Dishonour by non payment A promissory note.) The unpaid seller of goods. having a lien thereon.) Where the goods have been sold on credit. Unpaid Seller's Lien Section 54. or where presentment is excused and the bill is not accepted. (c.) The unpaid seller of goods loses his lien thereon: (a. [When Right of Lien may be Exercised.) Where the goods have been sold without any stipulation as to credit.) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the property in goods or the right to the possession thereof.Dishonour by non acceptance A bill of exchange is said to be dishonored by non-acceptance when the drawee. Where the drawee is incompetent to contract. does not lose his lien by reason only that he has obtained judgment or decree for the price of the goods. but the term of credit as expired. (b. the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases. (b. or that the delivery or payment or both shall be postponed.) Subject to the provisions of this act. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both. Section 56. Contract of sale (1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer.

Characteristics : Offer and Acceptance: There must be an offer from for buyer from a seller to buy goods. the right of subrogation is the right to pursue someone else's claim. Normally you could sue the negligent third party for causing your building to burn down. . There will be no valid contract if act is impossible to perform. Possibility of Performance: Purpose of contract must be able to be performed. which may sue him to recover the amount it paid you on account of the fire loss. A contract of sale will be valid if seller gets some value in return of selling his goods or services and at the same time buyer gets useful goods. Suppose you own a building which burns down due to the negligence of a third party. Free Consent of Involved Parties: If any of party is forced to sight the contract. the insurance company is then subrogated to your claim against the negligent third party. Example Insurance. i.An insured may waive in writing before a loss all rights of recovery against any person. Capacity of Involved Parties: All parties involved to contract of sale must be capable of doing contract and fulfilling contract. If you are subrogated to someone's claim. the contract will not be valid. Lawful Object: Purpose of making contract of sale must be lawful. It means that you may pursue it as though it were your own. Subrogation Simply stated. It can arise by the express agreement of the parties.e. If not waived. The doctrine of subrogation provides that if an insurer pays a loss to its insured due to the wrongful act of another. you will be able to write a perfect contract of sale. Nature of legal formalities will depend on the nature of contract for instance legal requirements for sale of consumption of goods will be different from sale of property or sale of business. If contract is going to be concluded for illegal purposes. Clear Meaning: Agreement of sale must include clear wording that would be easy to understand and all readers will percept same meaning of terms used in contract. When you will keep all essentials of a valid contract in mind. The right of an insurer to be subrogated to the rights of its insured is typically based upon: (1) the terms of the policy of insurance.but that's not what it means. Proper offer and acceptance from both involved parties will make this contract valid otherwise void. it will not be valid contract. If one party to a contract is minor. the contract will not be valid because free consent of all parties is a must for valid contract of sale. by operation of law. Consideration means something in return. we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. If your fire insurance company pays off your claim. or. (2) the right of equitable subrogation. it sounds as though you are somehow subordinated to it -. however. Legal Formalities: All legal formalities must be completed by all parties involved to contract. or automatically by operation of law.. This means your claim against the negligent third party is treated as having been assigned to the insurance company. the insurer is subrogated to the rights of the insured and may prosecute a suit against the wrongdoer for recovery of its outlay. The typical property insurance policy provision relating to subrogation provides in pertinent part: Subrogation . Legal Consideration: Sale and purchase of goods must be made for legal consideration.

Every company limited by guarantee. silver currency notes and precious stones etc. How the meeting is convened? It is provided in companies' ordinance that the directors shall send a notice of statutory meeting at least 21 days before the day of the meeting to all the shareholders of the company. d. Liability for Delay: The common carrier will be liable for any damage caused by its delay. 4. The consignor s own fault.Liabilities of common carrier 1. Inherent vice in the goods themselves. etc. e. It can be convened by the directors of the company only. The directors shall not send the statutory report duly certified by not less than three directors. Every private company converted into a public company. Common carrier is not liable for loss or damage to specific kind of goods shown in the schedule such as gold. Liability for Delivery: The carrier will be liable for an erroneous delivery regardless of the reason for misdelivery. one of whom shall be the chief executive of the company. an abstract of the receipts and payments of a company. b. Acts of the enemies of the state. occupation of the directors. It describes the shares allotted by the company cash. Liability for Scheduled Goods. An act of God. c. 2. The statutory report contains a brief account of the state of company's affairs since its incorporation and the business plan. cash received in respect of such shares allot. etc. exceeding Rs. 3. Liability for the safety of Goods: He is entirely responsible for the safety of the goods carried except when the loss or damage arises from: a. Liability for Injury: He is liable for injury to the passenger s person only if guilty of negligence. By whom and when held: The statutory meeting is held by Every public limited company limited by shares. Company has a separate legal entity Statutory Meeting Statutory meeting is the first meeting of the members of the public limited company. It is held only once in life of a public company. Business of the meeting: The business of the meeting is to consider the statutory report. 100 in value. . an acts of Public Authorities. 5. unless its value and description are properly disclosed to him before. names.

charge is fixed at the time of occurrence of manufacture or production. (c) Excisable goods are specified in Central Excise Tariff Act. . duty is payable on the date of removal i.e. (d) Such duty is levied and collected uniformly throughout India in accordance with the provisions of a specific Act known as Central Excise Act.e. (e) Taxable event of Central excise is manufacture or production i. 1985. (g) Excise duty is payable by the manufacturer or producer of excisable goods in certain cases. 1944. (b) Central excise duty is levied on all excisable goods produced or manufactured in India (except goods produced or manufactured in special economic zone). (f) Though taxable event is manufacture or production. clearance from factory.Chief features of central excise duty (a) It is an indirect tax.

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