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Types of Cheques:- Bearer Cheque:                                                                                                                                                         A bearer cheque is payable to the bearer, meaning the person holding the cheque can cash it. It does not have a specified payee's name, making it negotiable by anyone in possession of the cheque.                                                            ...

Types of Crossing: a) General Crossing: Generally, cheques are crossed when there are two transverse parallel lines, marked across its face or the cheque bears an abbreviation “& Co.“ between the two parallel lines or the cheque bears the words “Not Negotiable” between the two parallel lines or the cheque bears the words “A/c. Payee” between the two parallel lines. A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and affixing the full signature of drawer. Generally, cheques are crossed when: * There are two transverse parallel lines, marked across its face, or * The cheque bears an abbreviation “& Co. “between the two parallel lines, or * The cheque bears the words “Not Negotiable” between the two parallel lines, or * The cheque bears the words “A/c. Payee” between the two parallel lines. Specimens of General Crossing b) Special Crossing: When a cheque is crossed by two parallel lines and the name of ...

1.DIFFERENT BETWEEN CHEQUE AND BILL OF EXCHANGE:- S.No CHEQUE BILL OF EXCHANGE 1 Drawn on a specified banker only Can be drawn on any party 2 Payable on demand only Payable either on demand or after a fixed period 3 No need for acceptance Acceptance is a must 4 When a cheque is not paid it is said to be dishornour A bill can be dishoured even for non acceptance 5 A cheque can be crossed generally or specially No crossing is allowed 6 No documents will accompany a cheque Accompanied by trade documents 7 Nothing and protesting is not necessary for  a cheque A dishourned bill requires noting and protesting 8 Generally cheque are not discounted It is payable to order 2.WHAT ARE...

HOLDER AND HOLDER IN DUE COURSE WHAT DO YOU MEANT BY HOLDER? A person who is legally entitled to the possession of the negotiable instrument in his own name to receive the amount there of is called a “Holder”. He is the original payee. In case the bill is payable to the bearer, the person in possession of the negotiable instrument is called the holder. DEFINE HOLDER. According to section 8 the “holder of a promissory note, bill of exchange, or cheque means any person entitle in his own name to the possession there of and to receive or recover the amount due there on from the parties there to”. EXPLAIN THE RIGHTS OF A HOLDER. The holder of the negotiable instrument point out certain right viz v   To cross open cheques either generally or specially v   To convert a blank endorsement into a full endorsement v   To negotiable the instrument to a third party v   To present it to the market or drawee v   To use in his own name and v   To o...