Salient features of cheque

  1. Instrument in writing – only written form of cheque is valid. Oral orders do not constitute a cheque. According to negotiable instruments act writing also includes print. But bankers in their own interest and in the interest of their customer allow the cheques to be drawn only in ink.
  2. An unconditional order – the order is to pay and it is not a request. There should be no conditions attached with the cheque, if there are any conditions attached then it can no longer be called as a cheque.
  3. On a specified banker – a cheque is always drawn on a specified banker. Is advisable that the full name of the bank to be mentioned on the cheque. Usually details of the bank are printed on the cheque.
  4. Payee to be certain – in order to make the cheque a valid one, there is should be clear mentioning of the payee on it. A normal cheque is one in which there is a drawer, a drawee banker and a payee or no payee but the bearer. The payee is the person to whom the amount of the cheque is payable.
  5. A certain sum of money – cheque is drawn for a definite sum of money. Indefiniteness has no place in monetary transactions. Exact amount should be mentioned in writing on the cheque
  6. Payable on demand – a cheque is payable only on demand. It is not necessary to use the word ‘on demand’ as in the case of a demanded bill. Unless the time is specified on the cheque, it is always payable on demand
  7. To be signed by the drawer – it is to be signed by the drawer. He/she puts his/her signature on the bottom right hand corner of the cheque. If the signature differs from the specimen or it is slightly different, the banker need not honor the cheque
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