Bill Of Exchange
A bill of exchange is a written acknowledgement of the debt, written by the creditor and accepted by the debtor.) It is called a draft before its acceptance. Therefore, one of the underlying features of a bill of exchange is that it has to be accepted either by the person upon whom it is drawn or by someone else on his/her behalf.

What are the essentials of a Bill Of Exchange?

• Number of parties : A bill of exchange has three parties -the drawer, the drawee, and the payee. Sometimes the drawer and the payee can be one and the same person.
• Must be writing : The Bill of Exchange must be in writing.
• It must be signed by the drawer.
• Express order to pay : This is the essence of a bill of exchange. There must be an ‘order by the drawer to the drawee to pay. The order must be a command and not an excessive request.
• Order must be unconditional : The order to pay must be unconditional. The order of the payment of the bill must not dependent on a contingent event. A conditional bill of exchange is invalid.
• Order to pay money only : Just as a promissory note, the instrument must be for money only.
• Sum payable to be certain : The amount payable must be certain. There should be no ambiguity in the amount to be paid through the bill of exchange.
• Parties : The drawer, drawee and the payee are the parties in a bill of exchange. The drawer, drawee and payee must be certain.
• Must be signed : The instrument is complete only when it is signed by the drawer and the drawee.
• Acceptance : It must be accepted by the drawee by putting his signature on the face of the instrument with or without the word ‘accepted’.
• Must bear the stamp : A Bill of Exchange must be properly stamped in accordance with the Indian Stamp Act, 1899.
• Other formalities : Formalities such as date, place, consideration, etc. are usually found in a bill of exchange.
• Requisites of a contract to be complied with : All requisites of a valid contract like capacity to contract, consideration, free consent, lawful object must be present.

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What is Bill Of Exchange?

As per Section 5 a bill of exchange” is “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.”
A bill of exchange is a written acknowledgement of the debt, written by the creditor and accepted by the debtor.) It is called a draft before its acceptance. Therefore, one of the underlying features of a bill of exchange is that it has to be accepted either by the person upon whom it is drawn or by someone else on his/her behalf.
For example,
‘A’ sold goods to ‘B’ on credit for 20,000 for three months. If agreed so, ‘A’ can draw a bill of exchange upon ‘B’ for? 20,000 payable after three months. Before it is accepted by ‘B’ it will be called a draft. It will become a bill of exchange only when ‘B’ writes the word “accepted” on it and puts his signature to communicate the acceptance.

Promissory Note :- Promissory note is a written promise to pay a debt. It is a financial instrument, in which one party (maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed, determinable future time or on demand of the payee subject to specific terms. A promissory note is an instrument of credit which posses the characteristics of negotiability.

Parties to a Promissory Note:

Primarily there are two parties involved in a promissory note.
They are

• The Maker or Drawer: The person who makes a – promissory note is called the “maker”.
• The Payee – Payee is the person to whom the amount is payable.

In course of transfer of a promissory note by payee and others, the parties involved may be Endorser and Endorsee.

• The Endorser – Endorser is the person who endorses the note in favour of another person.
• The Endorsee – Endorsee is the person in whose favour the note is negotiated by endorsement.

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What is a Promissory Note?

Promissory note is a written promise to pay a debt. It is a financial instrument, in which one party (maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed, determinable future time or on demand of the payee subject to specific terms. A promissory note is an instrument of credit which posses the characteristics of negotiability.

Thus, a promissory note generally means a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. A promissory note can be either payable on demand or at a specific time. If the promissory note is unconditional and readily salable, it is called a negotiable instrument.

As per section 4 of the Negotiable instrument Act a promissory note is ” an instrument in writing (not being a bank note or a currency note) containing unconditional undertaking, signed by the maker, to pay a certain sum money only to or to the order of
bearer of the instrument”.

Meaning of Negotiable Instruments

There are certain documents which are freely used in commercial transactions. They are called negotiable instruments. Negotiable Instrument literally means a written document which create a right in favour of some person and which is freely transferable. It is not assignable but transferable. Negotiable Instruments are money/cash equivalents. These can be converted into liquid cash subject to certain conditions.

Types of negotiable instruments

We can broadly classify negotiable instruments into two categories.

• Instruments negotiable by law.
• Instruments negotiable by custom or usage of trade.

Instruments negotiable by law :- As per Negotiable instrument Act there are three types of negotiable instruments such as promissory note, bills of exchange and cheque. Therefore these are termed as negotiable instruments by statute-> Written Law.

Negotiable instruments by custom or usage :- Section 17 of the Transfer of Property Act states that instruments may be negotiated by custom and their negotiability will be recognized by courts. It consists of Hundies, Bank draft, Dividend warrant, share warrant, Postal order and railway receipt.

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What is Negotiable instrument Act 1881?

The negotiable instruments are governed by the Negotiable Instrument Act of 1881 in India. It extends to the whole of India except the state of Jammu and Kashmir. The Act came into force on 1st march 1882. It is recently amended by “the Banking. Public Financial Institutions and Negotiable Instrument Laws (Amendment) Act 1988.

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Meaning of Negotiable Instruments

There are certain documents which are freely used in commercial transactions. They are called negotiable instruments Negotiable Instrument literally means a written document which create a right in favour of some person and which is freely transferable. It is not assignable but transferable Negotiable Instruments are money/cash equivalents. These can be converted into liquid cash subject to certain conditions. They play an important role in the economy in settlement of debts and claims. A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. It is a written document which creates a right in favour of some person and which is freely transferable. The term ‘negotiable’ means transferable by delivery. In this case Instrument is a written document which creates a right in favour of any person. Therefore, negotiable instrument is a written document which creates a right in favour of any person and which is transferrable by delivery. In other words it is a written promise or order to pay.money which may be transferred from one person to another. The transactions involving the Negotiable Instruments in our country are regulated by law and the framework of the Statute which governs the transaction of these instruments is known as The Negotiable Instruments Act. This act was framed in our country in the year 1881 when the British ruled our country. Prior to 1881 the transactions governing Negotiable Instruments were regulated under the cover of Indian Contract Act 1872.

Definitions about Negotiable Instruments

In the words of Justice Willis a negotiable instrument is “one the property in which is acquired by anyone who takes | bonafide and for value not withstanding any defect in the title of the person from whom he took it’.
According to section 13 of the Negotiable Instruments Act 1881, a “negotiable instrument” means a promissory note. bill of exchange or cheque payable either to order or to bearer . A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees.
The act recognizes three instruments as negotiable instruments. That is a promissory note, cheque and bill of exchange. But it does not exclude those instruments which satisfy the conditions of negotiability.
The conditions are

1.The instrument should be freely transferable by the custom of trade.
2.The person who obtains it in good faith and for value gets it free from all defects, and thus, is entitled to recover the money of the instrument in his own name.

In such circumstances, bearer bonds, treasury bills. certificates of deposits, dividend warrants and Improvement trust debentures, railway bonds payable to bearer or railway receipts are considered equivalent to negotiable instruments either by mercantile custom or by other enactments.
Money orders. Postal orders. deposit receipts, share certificates, bill of lading, dock warrants etc are not negotiable instruments even though they are transferable by delivery and endorsement because they are not able to give a better title to the bonafide transferee for value than that of the transferor has.

What is Internet banking or online banking?

Net banking helps the customer to transact with the help of a mouse. So he can avoid his visits to the neighborhood bank. Internet banking is sometimes called online banking.
It is an outgrowth of PC banking. Internet banks are also known as virtual, cyber, net, interactive, or web banks. Internet banking is used widely by masses. Online banking has opened the doors for all customers, to operate beyond boundaries. It has various benefits to offer. Nowadays, all banks provide online banking facility to their customers as an added advantage. Internet banking uses the Internet as the delivery channel by which banking activities are conducted.

One more risk related with a graduated home buyback is the chance of dispossession. Despite the fact that the borrower isn’t liable for making any home loan installments — and consequently can’t become delinquent on them — a house buyback requires the borrower to meet specific circumstances. Neglecting to meet these circumstances permits the bank to abandon.

As a graduated house buyback borrower, you are expected to reside in the home and keep up with it. Assuming the home falls into deterioration, it won’t be worth honest evaluation when now is the right time to sell, and the moneylender will not have the option to recover everything that it has reached out to the borrower.

Invert contract borrowers are additionally expected to remain current on local charges and mortgage holders protection. Once more, the loan specialist forces these necessities to safeguard its advantage in the home. On the off chance that you don’t make good on your local charges, then your nearby assessment authority can hold onto the house. On the off chance that you don’t have property holders protection and there’s a house fire, the loan specialist’s guarantee is harmed.

How do we stay away from Reverse Mortgage Scams?

With an item as possibly rewarding as a graduated house buyback and a weak populace of borrowers who may either have mental impedances or be frantically looking for monetary salvation, tricks flourish. Deceitful merchants and home improvement workers for hire have designated seniors to assist them with tying down graduated house buybacks to pay for home enhancements — at the end of the day, so they can make bank. The merchant or project worker could conceivably really follow through on guaranteed, quality work; they may very well take the property holder’s cash.

Family members, guardians, and monetary consultants enjoy likewise taken benefit of seniors either by utilizing a general legal authority to switch contract the home, then taking the returns, or by persuading them to purchase a monetary item, for example, an annuity or entire extra security strategy, that the senior can manage by getting a house buyback. This exchange is probably going to be just in the supposed wellbeing of the monetary guide, relative, or parental figure. These are only a couple of the house buyback tricks that can entangle accidental mortgage holders.