1. Promissory note
This an instrument in writing (not being a bank note or a currency note) containing an
unconditional undertaking, signed by the maker, to pay a certain sum of money only to or
to the order of a certain person or to the bearer of the instrument. There are primarily two
parties involved in a promissory note. They are;
i) The maker or drawer – the person who makes the note and promises to pay the
amount stated therein.
ii) The payee – the person to whom the amount is payable.
In course of transfer of a promissory note by payee and others, the parties involved are;
iii) The endorser – the person who endorses the note in favour of another person
iv) The endorsee – the person in whose favour the note is negotiated by
endorsement.
2. Bill of exchange
It 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 person, or to the bearer of the instrument. There are three parties involved in a bill of exchange;
i) The drawer – The person who makes the order for making payment.
ii) The drawee – The person to whom the order to pay is made. Generally a debtor
of the drawer.
iii) The payee – The person to whom the payment is to be made.
3. Cheques
A cheque may be regarded as a bill of exchange; the only difference is that the bank is
always the drawee in case of a cheque.
A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. Actually, a cheque is an order by the account holder of the bank directing his banker to pay on demand, the specified amount, to or to the order of the person named therein or to the bearer.
NatalieR answered the question on February 15, 2022 at 01:20
- Why are references required when opening an account?(Solved)
Why are references required when opening an account?
Date posted: February 15, 2022. Answers (1)
- Distinguish between a gratuitous bailee and a bailee for reward. (Solved)
Distinguish between a gratuitous bailee and a bailee for reward.
Date posted: February 15, 2022. Answers (1)
- List circumstance where a banker must cease to honor customers cheque on presentation(Solved)
List circumstance where a banker must cease to honor customers cheque on presentation.
Date posted: February 15, 2022. Answers (1)
- The creation of bailor/bailee relationship arises where a person called the bailee is given
control of the property of another person called bailor for a specific...(Solved)
The creation of bailor/bailee relationship arises where a person called the bailee is given
control of the property of another person called bailor for a specific purpose e.g., where a
customer of a bank deposits valuables in safe custody with the intention that on request
they will be returned to him/her. However, whether a banker is a bailee for reward or for free he/she must take the highest standard of care expected from person undertaking business of banking. Briefly explain the Liability attaching to bailee.
Date posted: February 15, 2022. Answers (1)
- Discuss Bank’s procedure on receipt of order or summons from high court.(Hint: Summon is also known as garnishee order)(Solved)
Discuss Bank’s procedure on receipt of order or summons from high court.(Hint: Summon is also known as garnishee order)
Date posted: February 15, 2022. Answers (1)
- In which ways may revocation/determination occur in the Power of attorney?(Solved)
In which ways may revocation/determination occur in the Power of attorney?
Date posted: February 15, 2022. Answers (1)
- Identify forms of Power of Attorney(Solved)
Identify forms of Power of Attorney
Date posted: February 15, 2022. Answers (1)
- Highlight circumstances for termination of the bank's authority to pay(Solved)
Highlight circumstances for termination of the bank's authority to pay
Date posted: February 14, 2022. Answers (1)
- Highlight the particulars required in opening and Conducting Bank accounts(Solved)
Highlight the particulars required in opening and Conducting Bank accounts
Date posted: February 14, 2022. Answers (1)
- Define the term Power of Attorney(Solved)
Define the term Power of Attorney
Date posted: February 14, 2022. Answers (1)
- Explain the term Garnishee Order(Solved)
Explain the term Garnishee Order
Date posted: February 14, 2022. Answers (1)
- “The duty of secrecy is not absolute but qualified.” Comment(Solved)
“The duty of secrecy is not absolute but qualified.” Comment
Date posted: February 14, 2022. Answers (1)
- Highlight the accounts that may be set off and when the right to set off arise(Solved)
Highlight the accounts that may be set off and when the right to set off arise.
Date posted: February 14, 2022. Answers (1)
- Outline circumstances Under which the bank can lift the veil of secrecy(Solved)
Outline circumstances Under which the bank can lift the veil of secrecy
Date posted: February 14, 2022. Answers (1)
- Elaborate the rights and duties of a banker to its customers .(Solved)
Elaborate the rights and duties of a banker to its customers.
Date posted: February 14, 2022. Answers (1)
- Highlight circumstances under which the bank act's as an agent to its customers(creditor).(Solved)
Highlight circumstances under which the bank act's as an agent to its customers(creditor).
Date posted: February 14, 2022. Answers (1)