Exam 21: Negotiable Instruments

Presentment of a bill is necessary where the bill of exchange is payable at sight, or after sight, because there is the need to determine the time at which payment is due.

The bank on which a cheque is drawn is called

What is a bill of exchange?

The two classes of negotiable instruments are

The difference between a cheque and draft is that

A drawee is

Negotiable instruments are different from other contracts. Explain this difference.

A person who negotiates an instrument in bearer form is known as

Delivery of a bill may be actual or

Explain the difference between negotiable instruments and other contracts.

Explain the concept of negotiability.

Jack writes a note for Mary. The note states that 'I Jack promise to pay you Mary $500.00 on January 4, 2003, or anytime after that date when a demand is made." Jack has given Mary a

Tina gave Zach a cheque for $1000 to pay for a TV. Zach took the cheque to Cash Mart, endorsed it, and Cash Mart paid him $950. Cash Mart is a holder in due course of a negotiable instrument.

A drawee is liable in respect of a bill of exchange before accepting and delivering it.

The Bills of Exchange Act governs the following kinds of instruments.

Which of the following defences is available to the drawer of a cheque who is being sued by a holder in due course of a negotiable instrument?

Negotiability is the special quality possessed by negotiable instruments.

Who is the drawer of a bill?

Sight drafts can be used as

Explain the nature of the liability of a drawer on a draft and cheque.