1. Cheque is an musical instrument inwards writing
A banking concern represent must move inwards writing. It tin move written inwards ink pen, ball dot pen, typed or fifty-fifty printed. Oral orders are non considered equally cheques.
2. Cheque contains an unconditional order
Every banking concern represent contains an unconditional society issued past times the client to his bank. It does non contains a asking for payment. H5N1 banking concern represent containing conditional orders is dishonoured past times the bank.
3. Cheque is drawn past times a client on his bank
A banking concern represent is e'er drawn on a specific banking concern mentioned therein. Cheque drawn past times stranger are of no meaning. Cheque mass facility is made available exclusively to work organization human relationship holder who are supposed to hold for sure minimum residuum inwards the account.
4. Cheque must move signed past times customer
A banking concern represent must move signed past times client (Account holder) . Unsigned cheques or signed past times persons other than customers are non regarded equally cheque.
5. Cheque must move payable on demand
A banking concern represent when presented for payment must move paid on demand. If banking concern represent is made payable subsequently the expire of for sure catamenia of fourth dimension as well as thence it volition non move a cheque.
6. Cheque must advert exact total to move paid
Cheque must move for coin only. The total to move paid past times the banker must move certain. It must move written inwards words as well as figures.
7. Payee must move for sure to whom payment is made
The payee of the banking concern represent should move for sure whom the payment of a banking concern represent is to move made i.e. either existent mortal or artificial mortal similar articulation stock company. The cry of the payee must move written on the banking concern represent or it tin move made payable to bearer.
8. Cheque must move duly dated past times client of bank
A banking concern represent must move duly dated past times the client of bank. The banking concern represent must cry for clearly the date, calendar month as well as the year. H5N1 banking concern represent is valid for a catamenia of iii months from the appointment of issue.
9. Cheque has 3 parties : Drawer, Drawee & Payee
- Drawer : H5N1 drawer is a person, who draws a cheque.
- Drawee : H5N1 drawee is a banking concern on whom a banking concern represent is drawn.
- Payee : H5N1 payee is a mortal inwards whose favour a banking concern represent is drawn.
