Question

Discuss in detail the features of a cheque.

Answer 1

A cheque is a negotiable instrument drawn on a particular banker.
Features:
(1) Instrument in Writings:
A cheque or a bill or a promissory note must be an instrument in writing. Though the law does not prohibit a cheque from being written in pencil, bankers never accept it because of the risks involved. Alternation is quite easy but detection is impossible in such cases.

(2) Unconditional Orders:
The instrument must contain an order to pay money. It is not necessary that the word ‘order’ or its equivalent must be used to make the document a cheque. It does not cease to be a cheque just because the word ‘please’ is used before the word pay. Further, the order must be unconditional.

(3) Drawn on a Specified Banker Only:
The cheque is always drawn on a specified banker. A cheque vitally differs from a bill in this respect as the latter can be drawn on any person including a banker. The customer of a banker can draw the cheque only on the particular branch of the bank where he has an account.

(4) A Certain Sum of Money Only:
The order must be for payment of only money. If the banker is asked to deliver securities, the document cannot be called a cheque. Further, the sum of money must be certain.

(5) Payee to be Certain:
The cheque must be made payable to a certain person or to the order of a certain person or to the bearer of the instrument. The word, a person includes corporate bodies, local authorities, associations, holders of the office of an institution, etc.

(6) Signed by the Drawer:
The cheque is to be signed by the drawer. Further, it should tally with specimen signature furnished to the bank at the time of opening the account.