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Home Training Courses Negotiable Instruments – Bills of Exchange & Promissory Note

Negotiable Instruments - Bills of Exchange & Promissory Note

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What you'll get

  • 50m
  • 9 Videos
  • Course Level - Intermediate
  • Course Completion Certificates
  • One-Year Access
  • Mobile App Access

Curriculum:

    Through this course you will be learning about what are basically Negotiable Instruments, History of the Negotiable Instruments Act, 1881 and its various amendments , Meaning of the Negotiable instruments and how it is defined under the NI Act. Various features of the Negotiable Instruments, Its special features and distinctive features, its transferability by endorsement and delivery in case of order instruments and my delivery for bearer instruments.

    Two types of N.I. by statute and by custom. Which instruments do not come under N.I. The characteristics of a Negtiable Instruments and various presumptions on the same. Who are the parties to a Promissory Note, Bill of exchange and cheque. The essentials regarding the unconditional order in writing, signed by the maker, specifying the amount etc. Precautions while issuing the cheques, what are the MICR codes and how they identifies the bank and its branch. What are the distinctions between a Pronote and Bill of Exchange as to the parties involved, Payment to the maker, Unconditional promise, Prior acceptance, primary liability, relation, protest for dishonour and notice of dishonour. What are Inland Bills and Foreign bills and how they are different from one another. The need of protesting in case of a foreign bill.Time bills are payable after a certain time while demand bills are payable at sight. Trade bill is a bill which is supported by a genuine trade transaction while accommodation bills are issued for accommodating the party by finace by bankers after discounting the the bills. There is no movement of goods in case of accommodation bills and no consideration is involved in the transaction. Drawees have to make the payment of the bill on due dates, whether it is a trade bill or accommodation bills. Foreign bills are prepared normally in two sets, where a minimum two original Bill of Lading are issued by shipping companies, one original attached to each set for the purpose of safety of the bills, due to any loss in transit. A cheque is always drawn on a banker, while B/E can be drawn on a person or firm or even on a bank, if it is under L/C. Acceptance is necessary in case of B/E, while in case of a cheque it is not required. In a Bill of Exchange, grace period is allowed, while in a cheque it is not. Payment of a cheque issued can be countermanded, while the facility is not there in case of bills. Notice of dishonour is required in case of bills, while in case of cheque it is not required. Stamping is required in case of bills, while in case of cheque it is not required. A cheque can only be drawn on demand, while a B/E can be at sight or on usance. A cheque can be issued to a bearer, while a B/E cannot be issued to bearer. Definition of a holder in due course, rights of a holder in due course with regard to crossing, negotiability and for getting a duplicate one incase of loss of the original in transit. Various privileges regarding better title free from all defects ( section 53), every prior party to negotiate the documents (section 36), right in case of instrument received by unlawful means, estoppal against denying orginal validity, estoppel against denying capacity of payee to endorsee, estoppel against denying signature or capacity of prior party etc. Definition of payment in due course. Requirements of a paying banker to get protection while making payment under due course. Prudence of a banker while dealing with the negotiable instrument whether it is a cheque or bill. The need of taking ID proof of the person, if the bearer is a third party. In case of suspicion, a banker should contact the drawer and confirm the details of the bearer before making the payment, so as to get protection as well as to prove in a court of law at a later stage, if the payment is alleged to have made to a wrong person.

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    Course Overview

    This wonderful online course is all about Bills of Exchange & Promissory Note. You will learn in detail about Negotiable Instruments, Promissory Note, Classification of bills, Distinction between a Bill of Exchange and a cheque etc.

    239
    Upto 2 hours 50m | 9 Videos | 89710 Views | Intermediate  Intermediate
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    Through this course you will be learning about what are basically Negotiable Instruments, History of the Negotiable Instruments Act, 1881 and its various amendments , Meaning of the Negotiable instruments and how it is defined under the NI Act. Various features of the Negotiable Instruments, Its special features and distinctive features, its transferability by endorsement and delivery in case of order instruments and my delivery for bearer instruments.

    Two types of N.I. by statute and by custom. Which instruments do not come under N.I. The characteristics of a Negtiable Instruments and various presumptions on the same. Who are the parties to a Promissory Note, Bill of exchange and cheque. The essentials regarding the unconditional order in writing, signed by the maker, specifying the amount etc. Precautions while issuing the cheques, what are the MICR codes and how they identifies the bank and its branch. What are the distinctions between a Pronote and Bill of Exchange as to the parties involved, Payment to the maker, Unconditional promise, Prior acceptance, primary liability, relation, protest for dishonour and notice of dishonour. What are Inland Bills and Foreign bills and how they are different from one another. The need of protesting in case of a foreign bill.Time bills are payable after a certain time while demand bills are payable at sight. Trade bill is a bill which is supported by a genuine trade transaction while accommodation bills are issued for accommodating the party by finace by bankers after discounting the the bills. There is no movement of goods in case of accommodation bills and no consideration is involved in the transaction. Drawees have to make the payment of the bill on due dates, whether it is a trade bill or accommodation bills. Foreign bills are prepared normally in two sets, where a minimum two original Bill of Lading are issued by shipping companies, one original attached to each set for the purpose of safety of the bills, due to any loss in transit. A cheque is always drawn on a banker, while B/E can be drawn on a person or firm or even on a bank, if it is under L/C. Acceptance is necessary in case of B/E, while in case of a cheque it is not required. In a Bill of Exchange, grace period is allowed, while in a cheque it is not. Payment of a cheque issued can be countermanded, while the facility is not there in case of bills. Notice of dishonour is required in case of bills, while in case of cheque it is not required. Stamping is required in case of bills, while in case of cheque it is not required. A cheque can only be drawn on demand, while a B/E can be at sight or on usance. A cheque can be issued to a bearer, while a B/E cannot be issued to bearer. Definition of a holder in due course, rights of a holder in due course with regard to crossing, negotiability and for getting a duplicate one incase of loss of the original in transit. Various privileges regarding better title free from all defects ( section 53), every prior party to negotiate the documents (section 36), right in case of instrument received by unlawful means, estoppal against denying orginal validity, estoppel against denying capacity of payee to endorsee, estoppel against denying signature or capacity of prior party etc. Definition of payment in due course. Requirements of a paying banker to get protection while making payment under due course. Prudence of a banker while dealing with the negotiable instrument whether it is a cheque or bill. The need of taking ID proof of the person, if the bearer is a third party. In case of suspicion, a banker should contact the drawer and confirm the details of the bearer before making the payment, so as to get protection as well as to prove in a court of law at a later stage, if the payment is alleged to have made to a wrong person.

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