Negotiable Instruments Act, 1881

You hand your landlord in Belapur a cheque for the deposit. A week later the bank returns it, and he is furious. Has he only a broken promise to complain about, or a crime to prosecute? Now suppose he had already signed the cheque over to his contractor, who knew nothing of the quarrel. Does the contractor's claim get weaker because of the landlord's problem with you? The Negotiable Instruments Act 1881 answers both questions, and this topic walks through how.

In two minutes

The Act treats the promissory note, bill of exchange and cheque as paper that can be passed from hand to hand; a holder in due course takes it free of earlier defects, every signatory is liable to the holder subject to presentment and notice, and a dishonoured cheque can also be prosecuted under s.138.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Law of Banking and Negotiable Instruments on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.