Essentials characteristics of a cheque

 Essentials characteristics of a cheque:-

(a)              The definition starts with the “cheque is a bill of exchange” so it must satisfy all the essential features of a valid bill of exchange.

(b)             It is always drawn on a specified banker. Banker includes any person acting as a banker and any post office saving bank [Sec. 3].

(c)              It is always payable on demand and not otherwise

 

 

   Form of cheque: - A cheque may be drawn in 3 forms:-

(1.)           Bearer cheque: - Expressed to be payable to bearer or the last endorsement is an endorsement in blank.

(2.)           Order cheque: - Expressed to be payable to order, or which is expressed as payable to a particular person with no prohibition on its transfer.

(3.)           Crossed cheque: - Cheque that can be collected only through a banker.

Essentials characteristics of a cheque by

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