Ch 14: Negotiable Instruments
1. Introduction
1-1 Introduction to negotiable instruments [O]
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.Â
In this example:Â
1. bill is being delivered (not being issued for the first time)
2. bill is not payable on demand (just payable to bearer)
1-3 Primary parties [R]
1-4 Holder & Holder in due course [R]
1-5 Q&A Holder in due course (ICAP Spring 2019) [X]
1-6 Negotiation and Indorsement  [R]
1-7 Q&A Bilal and Saad (ICAP Autumn 2021) [X]
1-8 Q&A Negotiation and Indorsement (ICAP Spring 2016) [X]
1-9 Payment in due course [R]
1-10 Q&A Sultan and Amjad (ICAP Spring 2020) [O]
1-11 Q&A Payment of stolen cheque (PQ) [O]
1-12 Q&A Terminology (ICAP Autumn 2014) [X]
2. Promissory Note
2-1 Promissory Note [I]
2-2 Q&A Identify promissory notes (PQ) [R]
2-3 Q&A Sarwat and Zain (ICAP Spring 2016) [O]
2-4 Q&A Mujahid and Shoaib (ICAP Autumn 2020) [R]
3. Bill of Exchange
3-1 Bill of exchange [I]
3-2 Promissory note vs. Bill of exchange [R]
3-3 Q&A Payment instrument to Tauseef (ICAP Autumn 2015) [R]
3-4 Q&A Validity of instruments (ICAP Spring 2021) [R]
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.
3-6 Q&A Instruments signed by Rahul (ICAP Autumn 2018) [R]
3-7 Q&A Doves & Co (Rizwan) (ICAP Spring 2023) [I]
4. Types of Negotiable Instruments
4-1 Order instrument & Bearer instrument [I]
4-2 Inland instrument & Foreign instrument [I]
4-3 Demand instrument & Time instruments [I]
5. Objective Based Q&A
5-1 MCQs [1 to 10] [O]
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"?