Asked by: Ruslanas Meyhoferasked in category: General Last Updated: 27th June, 2020
What are the different types of negotiable instruments?
- Promissory notes.
- Bill of exchange.
- Government promissory notes.
- Delivery orders.
- Customs Receipts.
Similarly, it is asked, how many types of negotiable instruments are there?
Negotiable instruments include two main types: an order to pay (encompasses drafts and checks) and promises to pay (promissory notes and CD's). The instruments can also be classified as demand instruments or time instruments. Thus there are four types of negotiable instruments.
Furthermore, which are the Negotiable Instruments? Negotiable instruments are transferable in nature, allowing the holder to take the funds as cash or use them in a manner appropriate for the transaction or according to their preference. Common examples of negotiable instruments include checks, money orders, and promissory notes.
Also question is, what is negotiable instruments and its types?
Negotiable instruments are a type of document that guarantees the payment of a particular amount of money at a set time or on-demand and the payer's name is generally mentioned on the document and its most common types are checks, promissory notes, bills of exchange, customer receipts, delivery orders, etc.
What are the types of negotiable instruments and who are their parties?
- Maker/drawer: the person who makes or executes the note promising to pay the amount stated therein.
- Drawee: The person directed to pay the money by the drawer.
- Payee: Payee is the person whose name is written on the promissory note or bill of exchange or cheque.