CIVIL LAW Promissory note

CIVIL LAW
3. The promise to pay must be unconditional. The promise to pay must not depend upon the happening of some uncertain event or fulfillment of condition. It must be absolute. If it contains a conditional promise, it is not a valid promissory note (Wrong – “I promise to pay B $500 seven days after my marriage with C.”)

CIVIL LAW
4. It must be signed by the maker in any part of the instrument.
5. The maker must be a certain person.
6. The payee must be certain.
7. The sum payable must be certain.
8. The sum payable must be in national currency.

CIVI LAW
Bill of exchange
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 or to the bearer of the instrument.

CIVIL LAW
Parties:
Drawer – the person who makes the bill
Drawee – the person who is directed to pay
Payee – the person to whom the payment is to be made
The drawer or the payee in case of endorsement is called the “holder”. The holder must present the bill to the drawee for his acceptance when the drawee accepts the bill, by writing the words “accepted” and signs it, he is called the “acceptor’.

CIVIL LAW
Essentials:
It must be in writing
It must contain an order to pay
The order to pay must be unconditional
It must be signed by the drawer
The drawee must be certain person
The payee must be a certain person
The amount payable must be certain
The order must be to pay money only
It must also comply with the formalities as regards date, peace, consideration, stamps, etc.

CIVIL LAW
Cheque
Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.
Parties:
Drawer – the person who draws the cheque
Drawee – the bank on which the cheque is drawn
Payee – the person to whom the cheque is made payable