AIOU SOLVED ASSIGNMENT 2 CODE 460 MERCANTILE LAW
AIOU SOLVED ASSIGNMENT 2 CODE 460
Q 1: Answer
The word “Negotiable” means transferable by delivery and the word instruments means written documents. It entitles a person to a certain sum of money. In simple words we can say it is a written document which is transferable from one person to another by delivery. Under contract Act section 13 “Negotiable instruments mean a promissory note, bill of exchange, or cheque payable by order or bearer”. So we can say that cheques, promissory notes and bill of exchange are the main examples of negotiable instruments.
Detailed note on Cheque
A written order of a depositor upon a bank to pay to the designated party or the bearer a specified, sum of money on demand. The person who is drawing the cheque is called drawer and the person to whom payment is being made is called payee, while the bank is called drawee.
There are some conditions for cheque.
1) The cheque must be in writing. The cheque cannot be oral.
2) The order to pay must be unconditional. If there is any condition then the instrument cannot be called a cheque. E.g if you make an order for bank please pay the sum of money to the bearer if his any family member passed the BA.
3) The cheque must be signed by the maker.
4) The amount in the cheque must be certain, specific.
5) The payment should be of money only.
6) The payment must be paid on demand.
7) It must be an order of a depositor on a bank.
Q 2: Answer:
=For term “Company” see your book Page # 267
=For Term “Limited Company” see your aiou book page # 289 (Point 1 of point 1.3).
= Legal provisions, regarding incorporation of LTD company. (Page # 274 and 275).
Q 3: For answer Your AIOU book page # 237 -238 – 239 up to point Expulsion.
Q 5: See page of AIOU Book Page # 320 -321 -322 -323 -324 -325 -326.