Ch 14: Negotiable Instruments
1-2 Characteristics [O]
Query: in title of holder in due course example, sajid delivered bearer bill of exchange to hamid, but sbp restricts to issue bearer bill of exchange on demand, so is this valid bill of exchange?
Response: Yes. Section 35 of SBP Act invalidates the issue of bill of exchange payable to bearer on demand.
In this example:
1. bill is being delivered (not being issued for the first time)
2. bill is not payable on demand (just payable to bearer)
2. Promissory Note
3. Bill of Exchange
3-5 Q&A Aftab, Kamran & Abdullah (ICAP Autumn 2022) [I]
YouTube Video (4 minutes)
Notes PDF - BL288
Note: This content will be available on 12 November 2022.
4. Types of Negotiable Instruments
5. Objective Based Q&A
5-2 MCQs past exams upto Spring 2022 [R]
Query: A negotiable instrument is valid when all of the criteria Mets . Since payee name is clearly mentioned but you cannot restrict the payment to specific person only
Response: We gave reference of Section 5 and Section 13 of Negotiable Instruments Act, 1881. Can you please give us section reference of your statement "you cannot restrict the payment to specific person only"?