BUSINESS LAW

Acknowledgment
We are thankful to Allah Almighty who made us
able to successfully go through this piece of
work. We acknowledge all our efforts and work
to our parents, and all our teachers who have
put in a lot of efforts while directing us to the
path way of success and especially Ms.
Neshoba whose affection, concern and
motivation were our guides during the
completion of this particular project

Group Members
3
 GROUP MEMBERS
Moheb-ur-Rehman (Group Leader)

Zulfiqar Ashraf

Moazam Yousaf

Haroon Ahmed

Awn Raza
 NEGOTIABLE
INSTRUMENT
DEFINITION

According to section 13 of the Negotiable

Instruments Act, 1881, a negotiable
instrument means “promissory note, bill
of exchange, or cheque, payable either to
order or to bearer”.
TYPES OF NEGOTIABLE
INSTRUMENTS

Cheque

Bill of Exchange

Promissory Note
CHEQUE

A cheque is a bill of exchange drawn on a

specified bank and not expressed to be
payable otherwise than on demand.
USES OF CHEQUE

Use as a Bill of Exchange

Always Drawn on Bank

Payable on Demand
Parties

Drawer

Drawee

Payee
Specimen
TYPES OF CHEQUE

a) Open Cheque
i - Bearer Cheque
ii - Order Cheque

b) Cross Cheque
Open cheque

An open cheque is payable at the counter

of the bank on the presentation of the
cheque.
Bearer cheque
A bearer check is payable to anyone who
is in possession of the document: this
would be the case if the cheque does not
state a payee, or is payable to “bearer” or
to "cash“.
Order Cheque
Itis also payable at the counter of the
bank. It is paid by the banker after getting
satisfaction about true identity of the
holder of the cheque.
Cross Cheque
a check with two lines across it showing
that it can only be deposited at a bank and
not exchanged for cash
BILL OF EXCHANGE
A billof exchange is an instrument in
writing containing an unconditional order,
signed by the maker, directing a certain
person to pay on demand or at a fixed or
determinable future time a certain sum of
money only to or to the order of, a certain
person or to the bearer of the instrument.
(Sec 5)
Who use the bill of exchange
 Dealer
 Mercantile
 Banker
 Insurance Company

NUMBER OF PARTIES
 Drawer
 Drawee
 Payee
 
Presentment For Acceptance

 
Types of Acceptance
 
1- General Acceptance
2- Qualified Acceptance
Presentment for Payment

Dishonor of Bill of Exchange

 

Types Dishonor of Bill of Exchange

Non-Acceptance
Non-Payment
NOTICE OF DISHONOUR

NOTICE MODE

Noting

Protest

Discharge of parties from Liability

 
TYPES OF BILL OF EXCHANGE

 INLAND BILL
 FOREIGEN BILL
 ORDER BILL
 FICTITIOUS BILL
 ACCOMMODATION BILL
 UNDATE BILL
 DOCUMENTARY BILL
 BILL IN SET
 CLEAN BILL
 TRADE BILL
PROMISSORY NOTE
A promissory note is an instrument in
writing containing an unconditional
undertaking ,signed by the maker , to pay on
demand or at a fixed or determinable future
time a contain sum of money only to , or to
the order of , a contain person , or to the
bearer of the instrument.
Parties of Promissory note
Maker: The person who promises to pay
is called maker
 Payee: The person to whom payment is
to be made is called payee
Essentials

In writing
 Unconditional promise
 Signed by maker
Certain maker
 Stamped
Payable at fixed time
Thank
You