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Negotiable instrument


Nishant Kumar (Student)     03 March 2013

Nishant Kumar
Student 
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Hello

One of the essential characteristic of a Negotiable Instrument is that it must be payable to either order or bearer. Could you please explain me the meaning of "order" and "bearer"?

Thank You

avater

TSGRR (Student )     03 March 2013

TSGRR
Student  
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"Order" - Written instrument that allows the holder to be paid money or to do something

For ex: A banker's Postal order i.e., an order to bank / Post office to pay money

Bearer: Person who has a cheque for payment on demand

For ex; This cheque is payable to the bearer i.e, to the person who presents it at a bank.

Now i hope you understood the meaning of the words Order & Bearer.

avater

Leez (none)     04 March 2013

Leez
none 
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If it is payable to order then only the person named in the instrument can receive payment on the instrument. If it is payablr to bearer, then anyone who presents the instrument can recieve payment on it. Hope its clear.

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