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.