Dishonour of Instrument When a party to an instrument is liable to accept or to pay an instrument, refuses to accept or pay when duly presented, the instrument is said to be dishonoured. Dishonour of Negotiable Instrument  A Negotiable Instrument may be dishonoured due to: Non-acceptance (s. 91) Non-payment (s. 92) The true owner of…

Presentment of Negotiable Instrument Presentment means showing an instrument to the drawee, acceptor or maker for acceptance, sight or payment. Kinds of Presentment Presentment of bills of exchange for acceptance. Presentment of promissory notes for sight. Presentment for payment. Presentment for Acceptance Certain instruments require acceptance. The drawee puts his signature signifying his assent and…

Negotiation Negotiation means transfer of the title of Negotiable Instrument to another person. Negotiable Instrument can be transferred by the following ways : Negotiation Assignment Transfer by Negotiation When an Instrument is transferred by one party to another, so as to make the transferee the holder thereof, the instrument is said to be negotiated (S….

Capacity of Parties A person competent to contract can become party to a negotiable instrument. If a party, who makes, draws, accepts, indorses, delivers or negotiates a promissory note, bill of exchange or cheque is incompetent to do so, the agreement is void as against him.  But the liability of other competent parties do not…

Negotiable Instrument Act 1881 It is enacted to define the law relating to Promissory Notes, Bill of Exchange and Cheques. It was enacted on 9th Dec 1981  and came into effect from 1st March 1982. Negotiable Instruments Certain documents commonly used in commercial transactions and monetary dealings, that are freely transferable from one person to…

Partners in Partnership Firm Partners in Partnership Firm Click here to Play English Video In this Part, we discuss about following topics about Partners of a Partnership Firm Mutual Relationship Rights of Partners Duties of Partner Liabilities of  Firm   Authority of  Partner  Acts of Partners Reconstitution of Firm Admission of New Partner Retirement of…

Dissolution of Partnership Dissolution of Partnership Dissolution of Partnership occurs when a change takes place in the constitution (composition)  of a firm. After such change in the composition of firm, the firm is called as Reconstituted Firm. If one or more partners cease to be the partners in the firm while other partners continue in…