StudentShare solutions
Triangle menu

Negotiable Instruments in Business Law - Article Example

Not dowloaded yet

Extract of sample
Negotiable Instruments in Business Law

Sections 134 to 137 of CHAPTER XVI of the Act relate to International Law. Section 134 regulates the jurisdiction of a foreign instrument;. The liability of the drawer of the instrument will be governed by the law of the place. Likewise, the liability of the holder or acceptor will be regulated by the law of the land of the receiver. Section 135 deals with the place of honoring the instrument. If the place of payment differs, then the matter of honoring it will be decided upon by the law of the place of payment. As per S. 136, if a negotiable instrument is drawn outside India (but) according to Indian Law, that instrument will be valid in India, even though the same is invalid in the place of drawing and accepting it. The last Section promulgates that any foreign country is considered as India in the matter of transacting the negotiable instrument, if not proven otherwise.
The legal issue raised in this article is about the provisions contained in Indian Negotiable Instrument Act 1881. Here the modus operandi of the fulfillment of the transaction and its subjectivity and objectivity together with its bindings are discussed in detail. Additionally, the liability and stipulations about the governing jurisdiction on the negotiable instrument transacted are explained.
One...
Discuss realistic solutions supported by sound legal and business principles.)

One can find many defenses to shun responsibility on negotiable instruments and elements connected with forgery, fraud and alterations in relation to negotiable instruments. For instance a drawer of a check can escape its payment by stopping its payment. But such stopping of payments through checks can be done by the drawer in case the check is declared missing or lost. But this loop hole in the law of negotiable instruments Act has been used by many a drawer so that they can escape their debt or liability. Even the amendmentof 1988 to Section 138 of the Negotiable Instruments Act remained silent about stopped payment.
Section 138 of the negotiable instruments act of 1881 deals with statutory offence in the matter of dishonour of cheques on the argument of deficiency of funds in the account preserved by a person with the banker. Section 138 of the Act can not be termed as falling in criminal act but they are prohibited under the penalty in public interest. Generally in criminal law presence of guilty intent is an important ingredient of a crime. But the Legislature has the right to create an offence of unlimited liability or stern liability where 'mens rea' is not at all required.
The Kerala High Court in K. S. Anto v. Union of India held that:
"Knowledge or reasonable belief, that pre requisite could be statutorily dispensed with in appropriate cases by creating strict liability offences in the interest of the Nation."
In addition the creation of the strict liability is an efficient measure by promoting greater alertness to avert usual heartless or otherwise stance of drawers of cheques in release of debts or otherwise. The terms as ...Show more

Summary

In India, the law regarding negotiable instruments like bills of exchange, checks, promissory notes etc. is codified under Negotiable Instruments Act 1881. Any person or agent or proxy who transacts a promissory note or check or any other instruments are bound by this Act…
Author : pmitchell
Negotiable Instruments in Business Law essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the article on your topic
"Negotiable Instruments in Business Law"
with a personal 20% discount.
Grab the best paper

Related Essays

Contract Law
Contract Law Essay Name Course Institution Date Introduction With the numerous happenings in the hospitality industry, there is a growing need for practitioners in the hospitality industry to have a system of dealing with both inside contractors and outsiders.
3 pages (750 words) Article
Contract Law
The law is settled in this respect in Carlill v Carbolic Smoke Ball Co4 in which the company made an offer through an advertisement offering £100 to any person who is affected with influenza after using smoke balls.
8 pages (2000 words) Article
International Law Article
Every civilization, be it colossal or diminutive, powerful or weak, has constructed for itself a structure of moral principles within which to expand. What can be done, what cannot be done, acceptable acts, outlawed proceeds, have all been spelt out inside the awareness of that society.
22 pages (5500 words) Article
Case for Briefing: Kedzie & 103rd Currency Exchange, Inc. v. Hodge 601 N.E.2d 803 (Ill. App. 1 Dist. 1992) Appellate Court of Illinois
der in due course of a negotiable instrument, Plaintiff Kedzie sought damages from Hodge, who claimed the defense of illegality of the Contract since Fentress was not licensed as a plumber as required by Illinois statute. The Court found in favor of the defendant, holding that
2 pages (500 words) Article
Law
“A contract is an agreement enforceable at law made between two or more persons by which rights are acquired by one or more to
4 pages (1000 words) Article
International business law
There had been a reported violation of the pledged destruction of chemical weapons arsenal by the Syrian government. The Obama administration was noted to be prodded to support Syrian rebels to prevent
2 pages (500 words) Article
Business to business marketing
The volumes that are normally transacted in B2B are usually higher as compared to those involved in other forms of transactions. The buying behavior of organizations is normally different from that of individuals. As a result the strategies applied in
1 pages (250 words) Article
The historic Development of Chinese Private International Law
It has also become part of various theories in the representation of one body of wings. In as much as there are some defects and issues, Chinese pedants have both the
16 pages (4000 words) Article
Business law article
First, each country has different set of labor laws that pertains to vacation leaves. It would be inaccurate to take the vacation leave practices in Europe and
2 pages (500 words) Article
Law problem
ic, informing them of your intent and also put up a time frame before beginning the enforcement For this reason, the FDA failed to notify duly all the stakeholders prior to enforcing the Food, Drug, and Cosmetics Act. The CNA are justified to dispute this unreasonable course of
2 pages (500 words) Article
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation