Nego
Nego
Nego
• This was enacted on February 3, 1911, and took effect on June 2, 1911.
• This is almost the same exact copy of the Uniform Negotiable Instruments Act
of the United States of 1896.
Introduction
• Important provisions under the NIL:
• Sec. 1 – Elements of Negotiable Instrument
• Sec. 2 – certainty of the amount payable
• Sec. 3 in rel. to Sec. 47 – unconditional character of instrument
• Sec. 4 – determinable future time, fixed future time, contingency
• Sec. 5 – provisions that do not affect the negotiability of the instrument
• Sec. 6 – omissions and additions
• Sec. 7 – payable on demand
Introduction
• Important provisions under the NIL:
• Sec. 23 – forgery
• Sec. 124 – material alteration
• Sec. 125 – material alteration
• Sec. 24 – presumption of valuable consideration
• Sec. 28 – want of consideration and failure of consideration
• Sec. 29 – accommodation party
• Sec. 30 – negotiation (referring to transfer of instrument)
• Sec. 33-39 – kinds of indorsement eg. Blank, special, restrictive (36), qualified,
conditional
• Sec. 48 – striking out indorsement
• Sec. 52 – what constitutes a holder in due course
• Sec. 59 - presumption
Introduction
• Important provisions under the NIL:
• Sec. 57 – rights of a holder in due course
• Sec. 60 – liability of a maker
• Sec. 61 – liability of a drawer
• Sec. 62 – liability of an acceptor
• Sec. 65 & 66 – warranties of an indorser
• Sec. 70-73 – presentment for payment
• Sec. 89 – notice of dishonor
• Sec. 126 – definition of bill of exchange
• Sec. 184 – definition of a promissory note
• Sec. 185 – definition of a check
Definition of Terms
• What is a negotiable instrument?
• It is a written contractual obligation that requires the payment of money.