What is Cheque -
A cheque is an order to a bank to pay a stated sum from drawer's account, written on a specially printed form. There are three parties Drawer, Drawee and Payee. All the cheques are bills of exchange. But all the bills of exchange are nt cheques
Meaning and Definition of Cheque -
Section 6 of the Negotiable Instrument Act 1881 defines A Cheque, According to Section 6 "a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand." A cheque is payable always on demand. Here drawer and payee may be the same person.
Essentials of a Cheque -
(1) It must be in writing. It cannot be oral.
(2) There must be an order to pay the amount
(4) Drawee must be a certain Bank
(5) The amount to pay must be fixed/certain.
(6) Payee must be certain
(7) A cheque is payable on demand only
(8) It must be signed by the drawer. An account holder of the bank can draw the cheque.
Difference between Promissory Note and Cheque
Kinds / Types of Endorsement
Kinds of a Cheque