14-01-2014, 04:57 PM
PROMISSORY NOTE
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Definition:
A Promissory Note is an instrument in
writing (not being a bank note or a currency note)
containing an unconditional undertaking signed by
a maker, to a pay a certain sum of money only to, or to
order of, a certain person, or to the bearer of the
Instrument (sec 4).
1.Writing:- The instrument must be in writing. Mere verbal engagement to
pay is note enough. Writing includes print and typewriting and may also be in pencil or inc.
2. Promise to pay:- The instrument must contain an express promise to pay. A mere acknowledgement of indebtness or implied undertaking by the
use of the word ‘debt’ or ‘pronote’, is not sufficient and it does not constitute a promissory note.
CHEQUE
A Cheque is a bill of exchange drawn upon a specified banker and
payable on demand and it includes the electronic image of a
truncated cheque and a cheque in the electronic form.
A cheque in the electronic form means “cheque which contains
exact mirror image of a proper cheque, and is generated, written
and signed in a secure system ensuring the minimum safety
standards with the use of digital signature and a asymmetric
crypto system.
A truncated cheque means a cheque which is truncated during the
course of clearing cycle, either by the clearing house or by the
bank whether by paying or receiving payment, immediately on
generation of an electronic image for transmission, substituting
the further physical movement of the cheque in writing.