Kleenmaid Home and Kitchen Appliances: In today’s fast-paced world, technology has made our lives easier and more comfortable. The same goes for our homes. Home appliances have evolved over the years, providing homeowners with convenient solutions for managing daily chores. One brand that has been at the forefront of this evolution is Kleenmaid. Kleenmaid Appliances is a well-known Australian brand that offers high-quality and reliable appliances for the modern home.
Kleenmaid Appliances: The Best Technology for Effortless Home Management
In this article, we’ll explore some of the best Kleenmaid Appliances available, including the Kleenmaid dishwasher, Kleenmaid washing machine, Kleenmaid rangehood, and Kleenmaid cooktop.
Kleenmaid Dishwasher
Doing the dishes can be a tedious and time-consuming task. However, with a Kleenmaid dishwasher, this chore can be a breeze. Kleenmaid dishwashers are designed to deliver superior cleaning results, thanks to their advanced features and technologies. These dishwashers are available in various sizes and styles, so you can choose the one that best suits your needs. They also come with a range of programs and wash options, such as intensive wash, quick wash, and eco wash, allowing you to customize your wash to suit your needs.
Kleenmaid Washing Machine
Washing clothes is another household chore that can be time-consuming and challenging, especially if you have a large family. However, with a Kleenmaid washing machine, you can get your laundry done in no time. Kleenmaid washing machines are built with advanced features that ensure your clothes are cleaned thoroughly and efficiently. These features include a large drum capacity, a range of wash cycles, and energy-saving options. They are also designed to be quiet and easy to use, making laundry day a lot less stressful.
Kleenmaid Rangehood
Cooking at home is an enjoyable experience, but it can also result in unwanted odors and fumes. This is where a Kleenmaid rangehood comes in handy. A Kleenmaid rangehood design to remove smoke, steam, and cooking odors from your kitchen, ensuring that your home smells fresh and clean. Kleenmaid range hoods are available in various styles, including wall-mounted and island models. They also come with advanced features such as multiple fan speeds, LED lighting, and easy-to-use controls.
Kleenmaid Cooktop
A cooktop is an essential appliance in any kitchen. A Kleenmaid cooktop is an excellent addition to your home, providing you with a seamless and efficient cooking experience. Kleenmaid cooktops exist designed with advanced features such as multiple cooking zones, precise temperature control, and easy-to-clean surfaces. They are available in various styles, including gas, electric, and induction models, so you can choose the one that best suits your cooking needs.
Conclusion
Kleenmaid Appliances are a great investment for any modern home. They offer advanced features, innovative technologies, and superior performance, making daily household chores effortless and stress-free. The Kleenmaid dishwasher, Kleenmaid washing machine, Kleenmaid rangehood, and Kleenmaid cooktop are just a few examples of the top-quality appliances available from this brand. If you’re in the market for new home appliances, consider investing in Kleenmaid Appliances for a more comfortable and convenient lifestyle.
FAQsTop of Form
Are Kleenmaid Appliances energy-efficient? Yes, Kleenmaid Appliances exist designed to be energy-efficient. They come with features such as energy-saving modes, which help reduce power consumption and save you money on your electricity bill.
How do I clean my Kleenmaid dishwasher? To clean your Kleenmaid dishwasher, remove any food debris or scraps from the filters and spray arms. Then, run the dishwasher on a hot cycle with a dishwasher cleaner. You can also wipe down the exterior of the dishwasher with a damp cloth and mild detergent.
Can I stack my clothes in a Kleenmaid washing machine? Yes, Kleenmaid washing machines exist designed with large drum capacities, allowing you to stack your clothes and wash more in a single cycle. However, be sure not to overload the machine as this can affect the cleaning performance.
How do I clean my Kleenmaid rangehood filters? To clean your Kleenmaid rangehood filters, remove them from the rangehood and soak them in warm soapy water for around 30 minutes. Scrub the filters with a soft brush to remove any grease or grime, then rinse them under running water. Allow the filters to dry completely before replacing them.
Can I install a Kleenmaid cooktop myself? It’s recommended that a licensed electrician or gas fitter install your Kleenmaid cooktop to ensure it’s done correctly and safely. If you’re unsure, it’s always best to seek professional help.
Kleenmaid Appliances: The Best Technology for Effortless Home Management; Image by Addi Gibson from Pixabay.
Equity instruments vs Debt instruments; Equity instruments allow a company to raise money without incurring debt. While Debt instruments are assets that require a fixed payment to the holder. Both equity and debt investments can deliver good returns, they have differences with which you should be aware. Debt investments, such as bonds and mortgages, specify fixed payments, including interest, to the investor.
What is the difference between Equity instruments vs Debt instruments? with Comparison;
The equity and debt investments argument has been ongoing in the investment world for years. Equity investments, such as stock, are securities that come with a “claim” on the earnings and/or assets of the corporation. Common stock, as traded on the New York or other stock exchanges, is the most popular equity investment.
As an investor, we should know the ins and outs of the different financial assets and then choose that which suits our goals. So, Capital is the basic requirement of every business organization, to fulfill the long term and short term financial needs. To raise capital, an enterprise either used owned sources or borrowed ones. Owned capital can be in the form of equity, whereas borrowed capital refers to the company’s owed funds or say debt. The equity and debt investments come with different high returns and risk levels.
Meaning and definition of Equity instruments:
Equity instruments (stock or share) allows the investor to buy an ownership stake in the company. Equity refers to the Net Worth of the company. It is the source of permanent capital. It is the owner’s funds which are divided into some shares. Fortunes can make or lost with equity investments. Any stock market can be volatile, with rapid changes in share values.
Often, these wide price swings do not base on the solidity of the organization backing them up but on political, social, or governmental issues in the home country of the corporation. Equity investments are a classic example of taking on a higher risk of loss in return for potentially higher rewards. Equity instruments are papers that demonstrate an ownership interest in a business.
More things;
Unlike debt instruments, equity instruments cede ownership, and some control, of a business to investors who provide private capital to a business. Stocks are equity instruments. Two main types of stocks exist. The first type prefers stock. The second type is common stock. Businesses issue stock in shares and, typically, the greater the amount of shares a single investor possesses, the greater the ownership interest in the company.
Equity holders incur greater risk than debt holders because equity holders do not enjoy priority in a bankruptcy proceeding. However, equity holders earn greater returns if the business succeeds. Where credit instruments provide set payments over a set period, equity instruments typically provide a variable return based on the business’ success. Therefore, if the business does extraordinarily well, equity investors may see a much healthier return than creditors.
Meaning and definition of Debt Instruments:
A debt instrument is an electronic obligation or any paper that permits an issuing party to raise funds by assuring it to pay back a lender by the terms and conditions of a contract. Debt investments tend to be less risky than equity investments but usually offer a lower but more consistent return.
Money raised by the company in the form of borrowed capital is known as Debt. It represents that the company owes money to another person or entity. They are less volatile than common stocks, with fewer highs and lows than the stock market.
The bond and mortgage market historically experiences fewer price changes, for better or worse, than stocks. Also, should a corporation be liquidated, bondholders are paid first. Mortgage investments, like other debt instruments, come with stated interest rates and are backed up by real estate collateral.
Debt instruments are the instruments that are used by the companies to provide finance (short term or long term) for their growth, investments, and future planning and come with an agreement to repay the same within the stipulated period.
More thing;
Long-term instruments include debentures, bonds, long-term loans from the financial institutions, GDRs from foreign investors. Short-term instruments include working capital loans, short-term loans from financial instruments.
Debt instruments are typically agreements where a financial institution agrees to loan borrower money in exchange for set payments of principal and interest over a set period. Debt instruments typically involve loans, mortgages, leases, notes, and bonds.
Anything that obliges a borrower to make payments based on a contractual arrangement is a debt instrument. Debt instruments can be secured or unsecured. Secured debt involves placing an underlying asset as security for the loan where, through the legal process, the lender can take possession of the underlying asset if the borrower stops making payments.
Unsecured debt base only on the borrower’s promise to pay. If business files for bankruptcy, creditors take priority over investors. Within the creditors, secured creditors take priority over unsecured creditors.
Comparison of Equity instruments and Debt instruments:
The following 6 comparisons of equity vs debt instruments below are;
1] Meaning:
Equity instruments allow a company to raise money without incurring debt, and they have used the holders to give money in exchange for a portion of the company. It funds raised by the company by issuing shares knows as Equity.
While Debt instruments are assets that require a fixed payment to the holder, they are mortgages and government bonds. It funds owed by the company towards another party knows as Debt.
2] Nature:
Equity instruments are the nature of return Variable and irregular, In contrast to the return on equity calls a dividend which is an appropriation of profit.
While Debt instruments are the nature of return Fixed and regular, and Return on debt knows as interest which is a charge against profit.
3] Legal:
Equity investments offer an ownership position in the company. Owning a stock makes the investor an owner of the organization. The percentage of ownership depends on the number of shares owned as compared with the total number of shares issued by the corporation. Also, the number of fund shares is its own funds.
While Debt instruments, whatever they may call, are corporate borrowing. Instead of procuring a straight commercial bank loan, the organization “borrows” from a variety of investors. This is why debt instruments, such as bonds, come with a stated interest rate, as a loan would. Also, the number of fund shares is the borrow funds.
4] Types:
Equity instruments are the types of investment in Shares and Stocks. While Debt instruments are the types of investment in Term loans, Debentures, Bonds, etc.
5] Goals and Risk:
Depending on your investment goals, these differences may strongly influence your preferences. All investments come with risk. However, debt instruments offer less risk than equity investments.
Your investing targets may favor equity investments if you’re seeking striking growth or profit potential. Conversely, you might focus on debt instruments when you prefer consistent income and less risk. Tailor your investment actions to match your objectives and risk tolerance.
Equity instruments are the types of investment in the long term, so that high risk. While Debt instruments are the types of investment in the comparatively short term, so that low and less risk.
FAQs
1. What are equity instruments?
Equity instruments are securities that provide ownership stakes in a company. They distribute the company’s net worth among shareholders and can include stocks or shares. Investors earn returns based on the company’s performance and may benefit from dividends or capital appreciation.
2. What are debt instruments?
Debt instruments are financial assets that represent a loan made by an investor to a borrower. This can be in the form of bonds, mortgages, or other contractual agreements, where the borrower acknowledges a debt and promises to pay interest and repay the principal at specified intervals.
3. How do equity instruments generate returns?
Equity instruments typically generate returns through dividends (profit distributions) and capital gains when the stock price increases. Returns can be variable and depend on the company’s financial performance.
4. How do debt instruments generate returns?
Debt instruments generate returns primarily through fixed interest payments made to the investor at regular intervals until the instrument matures. They tend to offer more consistent but typically lower returns compared to equity investments.
5. What are the main differences between equity and debt instruments?
The primary differences include:
Ownership vs. Obligation: Equity instruments provide ownership stakes, while debt instruments represent obligations to repay borrowed funds.
Return Nature: Equity returns are variable and depend on company performance; debt returns are fixed and regular.
Risk Levels: Equity investments are generally riskier, offering higher potential returns, whereas debt instruments are considered safer but with lower returns.
6. Which is riskier: equity or debt?
Equity instruments are generally considered riskier than debt instruments. While equity has the potential for higher returns, investors may also face greater losses if the company does poorly. Conversely, debt investments usually carry lower risks, as they provide fixed payments and priority in the case of bankruptcy.
7. Can an investor hold both equity and debt instruments?
Yes, an investor can hold both types of investments as part of a diversified portfolio. This strategy can help balance risk and return by combining the growth potential of equities with the stability of debt securities.
8. How does one choose between equity and debt investments?
When choosing between equity and debt investments, consider your financial goals, risk tolerance, and investment horizon. Equity may be more suitable for those seeking capital growth, while debt may appeal to those looking for steady income with lower risk.
9. What are some common equity instruments?
Common equity instruments include common stocks, preferred stocks, and real estate investment trusts (REITs).
10. What are some common debt instruments?
Common debt instruments include bonds, debentures, loans, and mortgages.
11. What happens in bankruptcy for equity and debt holders?
In a bankruptcy proceeding, debt holders are prioritized over equity holders. This means that debt investors will be paid back before equity investors receive any returns, if at all. Equity holders may lose their investment, whereas debt holders may recover a portion of their lent capital depending on the company’s liquidated assets.
Meaning of Negotiable Instrument: A negotiable instrument is a specialized type of “contract” for the payment of money that is unconditional and capable of transfer by negotiation. The Concept of the study Explains – Negotiable Instruments: Types of Negotiable Instruments, Classification of Negotiable Instruments, Importance of Negotiable Instruments. Common examples include cheques, banknotes (paper money), and commercial paper. Also learned, Negotiable Instruments: Types, Classification, Importance!
Explain and Learn, Negotiable Instruments: Types, Classification, Importance!
A promissory note: is a Written promise by the maker to pay money to the payee. the most common type of promissory note is a bank note, Which is defined as a promissory note made by a bank and payable to bearer on demand. Through promissory note a person i.e. maker (drawer) promise to pay the payee a specific amount on a specified date Without any condition. “o the important points in a promissory note are 1) it is unconditional order 2) a specific amount 3) payable to the order of a person or on demand.
A bill of exchange: is a Written order by the drawer to the drawee to pay money to the payee. The most common type of bill of exchange is the cheque, which is defined as a bill of exchange drawn on a banker and payable on demand. &ills of exchange are used primarily in international trade and are written orders by one person to his bank to pay the bearer a specific sum on a specific date sometime in the future.
A cheque: is an unconditional order in writing drawn upon a specified banker signed by the drawer, directing to the banker to pay on demand a certain sum of money to or to the order of a person named therein or to the bearer.
#Types of Negotiable Instruments:
Parties to various types of Negotiable Instruments:
Drawer or Drawee:
The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “Drawee”.
Drawee in case of need:
When in the bill or in any endorsement thereon the name of any person is given in addition to the Drawee to be resorted to in case of need such person is called a “drawee in case of need”.
Acceptor:
After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on this behalf, he is called the “acceptor”.
The acceptor for the honor:
When a bill of exchange has been noted or protested for non-acceptance or for better security, and any person accepts is supra protest for the honor of the drawer or of any one of the endorsers, such person is called an “acceptor for honor”.
Payee:
The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the “payee”.
Holder:
The “holder” of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.
Holder in due course:
“Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or endorse thereof, if (payable to order) before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.
Endorsement:
When the marker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, one the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to endorse the same, and is called the “endorser”.
Capacity to make, etc., promissory notes, etc.: Every person capable of contracting, according to the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance, endorsement, delivery and negotiation of a promissory note, bill of exchange or cheque.
Minor:
A minor may draw, endorse, deliver and negotiate such instruments so as to bind all parties except himself. Nothing herein contained shall be deemed to empower a corporation to make, endorse or accept such instruments except in cases in which, under the law for the time being in force, they are so empowered.
Agency:
Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or be bound by a duly authorized agent acting in his name. A general authority to transact business and to receive and discharge debts does not confer upon an agent the power of accepting or endorsing bills of exchange so as to bind his principal.
#Classification of Negotiable Instruments:
The Following Classification of Negotiable Instruments are:
Inland Instrument:
A promissory note, bill of exchange or cheque which is 1) both drawn or made in India and made payable in India, or 2) drawn upon any person resident in India, is deemed to be an inland instrument. A bill of exchange drawn upon a resident in India is an inland bill irrespective of the place where it was drawn.
Foreign Instrument:
An instrument, which is not an inland instrument, is deemed to be a foreign instrument. Foreign bills must be protested for dishonor if such protest is required by the law of the place where they are drawn. But protest in case of inland bills is optional.
Instruments payable on demand:
A cheque is always payable on demand and it cannot be expressed to be payable otherwise than on demand. A promissory note or bill of exchange is payable on demand:
When no time for payment is specified in it.
When it is expressed to be payable ‘on demand’, or ‘at sight’ or ‘on presentment’. The words ‘on demand’ is usually in a promissory note, the words ‘at sight’ are in a bill of exchange.
Ambiguous Instrument:
When an instrument owing to its faulty drafting may be interpreted either as a promissory note or a bill of exchange, it is called an ambiguous instrument. Its holder has to elect once for all whether he wants to treat it an as a promissory note or a bill of exchange. Once he does so he must abide by his election.
Forged Instrument:
An instrument is a forged when it is drawn, made or alternated in writing to prejudice another man’s rights. The most common form of forgery is signing another person’s signature, signing the name of the fictitious or none existing person. Fraudulently writing the name of an existing person is also the forgery.
Forgery is a nullity and, therefore, it passes no title. No holder of a forged instrument acquires any right on the instruments. Even a holder in due course gets no title if he comes into the possession of a forged instrument. A person has to pay money on a forged instrument by mistake, can recover it from the person to whom he has paid for it.
Bearer And Order Instruments:
An instrument is a bearer instrument when the amount payable thereon is payable to the bearer and him as a holder and in lawful possession, thereof is entitled to enforce payment due on it.
Negotiable Instrument is a certain type of document, which transfers the money. It makes easy to carry money from one place to another place. So, it is very important for the transfer of money in the business sector.
The following points can grasp as the importance of a Negotiable Instrument.
Negotiable Instrument is an easier means of transfer of money.
It is easy to delivery from one place to another place.
It helps to flourish in the business sector.
It creates the right of property.
It has the easy negotiability and somewhere it provides the security.
It makes the fast transaction of money.
It makes the security of money as well as personal security in course of the transaction of money.
Negotiable Instrument is an easier way to transfer money from one place to another place. It provides a safe way to deliver the money. It has an important role to develop the way of money transaction as well as the business realm.
A Promissory Note is an instrument in writing, except government note or bank currency, containing unconditional undertaking signed by the Maker to pay a certain sum of money only to, or to the order of or to the bearer or to a certain person related to the instrument. Section 2(f) of Negotiable Instrument Act, 2034 The person, who makes the promissory note or promises, is called a ‘Maker’ and he has to sign that document as a debtor.
The person to whom payment is to be made is called the ‘payee’. A promissory note is an unconditional promise to pay put into writing by a person or entity and signed by the borrower or person making the promise. Promissory notes are often created between a borrower and a lender in which the borrower promises to pay the lender a specific amount of money by the specified date.
A promissory note, similar to a contract, contains all of the details pertaining to the transaction such as the amount borrowed, late fees, interest rates, and so forth, and should contain the term “promissory note” within the body. In terms of enforceability, a promissory note lies somewhere between an informal IOU and a formal loan contract.
Bill of exchange is another type of Negotiable Instrument. It is also in practice in the business sector. A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
It is defined under section 2(g) of the Nepalese Negotiable Instrument Act, 2034. Section 2(g) defines as “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to, or to the order of a person or to a person or to the bearer of the instrument”.
On the basis of the above definition, there are three parties in the bill of exchange, which are as below:
Drawer: The maker of a bill of exchange.
Drawee: The person, who is directed to pay.
Payee: The person who receives the bill of exchange.
Another commonly used type of negotiable instrument is the bill of exchange. A bill of exchange is a financial document that states an individual or business will pay a certain amount on a specific date. The date may range from the date it is signed, to within six months into the future.
A bill of exchange must contain the signature of the individual promising to pay to be considered legally binding. Unlike a promissory note, a bill of exchange may be transferred to a third party, binding the payor to pay the third party who was not involved in the first place.
The cheque is a very common form of negotiable instrument. If you have a savings bank account or current account in a bank, you can issue a cheque in your own name or in favor of others, thereby directing the bank to pay the specified amount to the person named in the cheque. Therefore, a cheque may be regarded as a bill of exchange; the only difference is that the bank is always the drawee in case of a cheque.
The Negotiable Instruments Act, 1881 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. From the above dentition, it appears that a cheque is an instrument in writing, containing an unconditional order, signed by the maker, directing a specified banker to pay, on demand, a certain sum of money only to, to the order of, a certain person or to the bearer of the instrument.
The person who draws a cheque is called the “Drawer”. The banker on whom it is drawn is the “Drawee” and the person in whose favor it is drawn is the “payee”. Actually, a cheque is an order by the account holder of the bank directing his banker to pay on demand, the specified amount, to or to the order of the person named therein or to the bearer.
A Negotiable Instrument is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer usually named on the document. The Concept of the study Explains – Negotiable Instruments: Meaning, Definition of Negotiable Instruments, Characteristics of Negotiable Instruments, and Features of Negotiable Instruments. More specifically, it is a document contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term can have different meanings, depending on what law is being applied and what country and context it is used in. Also learned, Commercial Bills, Negotiable Instruments: Definition, Characteristics, and Features! Read and share the given article in Hindi.
Explain and Learn, Negotiable Instruments: Definition, Characteristics, and Features!
Negotiable Instruments Act: The law relating to “Negotiable Instruments” is contained in the Negotiable Instruments Act, 1881, as amended up-to-date. It deals with three kinds of negotiable instruments, i.e., Promissory Notes, Bills of Exchange and Cherubs. The provisions of the Act also apply to “hands” (an instrument in oriental language), unless there is a local usage to the contrary.
Other documents like treasury bills, dividend warrants, share warrants, bearer debentures, port trust or improvement trust debentures, railway bonds payable to bearer etc., are also recognized as negotiable instruments either by mercantile custom or under other enactments like the Companies Act, and therefore, Negotiable Instruments Act is applicable to them.
#Definition of Negotiable Instruments:
The word “Negotiable” means “Transferable by delivery”, and the word “Instrument” means “A written document by which a right is created in favor of some person”. Thus, the term “Negotiable instrument” literally means “a written document transferable by delivery”.
According to Section 13 of the Negotiable Instruments Act,
“A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.”
The Act, thus, mentions three kinds of negotiable instruments, namely notes, bills and cherubs and declares that to be negotiable they must be made payable in any of the following forms:
A) Payable to order:
A note, bill or cheque is payable to order which is expressed to be “payable to a particular person or his order”.
But it should not contain any words prohibiting the transfer, e.g., “Pay to A only” or “Pay to A and none else” is not treated as “payable to order” and therefore such a document shall not be treated as the negotiable instrument because its negotiability has been restricted.
There is, however, an exception in favor of a cherub. A cheque crossed “Account Payee only” can still be negotiated further; of course, the banker is to take extra care in that case.
B) Payable to bearer:
“Payable to bearer” means “payable to any person whom so ever bears it.” A note, bill or cheque is payable to bearer which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank.
The definition given in Section 13 of the Negotiable Instruments Act does not set out the essential characteristics of a negotiable instrument. Possibly the most expressive and all-encompassing definition of negotiable instrument had been suggested by Thomas who is as follows:
“A negotiable instrument is one which is, by a legally recognized custom of trade or by law, transferable by delivery or by endorsement and delivery in such circumstances that (a) the holder of it for the time being may sue on it in his own name and (b) the property in it passes, free from equities, to a bonfire transferee for value, notwithstanding any defect in the title of the transferor.”
#Characteristics of Negotiable Instruments:
An examination of the above definition reveals the following essential characteristics of negotiable instruments which make them different from an ordinary chattel:
Easy negotiability:
They are transferable from one person to another without any formality. In other words, the property (right of ownership) in these instruments passes by either endorsement or delivery (in case it is payable to order) or by delivery merely (in case it is payable to bearer), and no further evidence of transfer is needed.
The transferee can sue in his own name without giving notice to the debtor:
A bill, note or a cheque represents a debt, i.e., an “actionable claim” and implies the right of the creditor to recover something from his debtor. The creditor can either recover this amount himself or can transfer his right to another person. In case he transfers his right, the transferee of a negotiable instrument is entitled to sue on the instrument in his own name in case of dishonor, without giving notice to the debtor of the fact that he has become the holder.
The better title to a bonfire transferee for value:
A bonfire transferee off a negotiable instrument for value (technically called a holder in due course) gets the instrument “free from all defects.” He is not affected by any defect of title of the transferor or any prior party. Thus, the general rule of the law of transfer applicable in the case of ordinary chattels that “nobody can transfer a better title than that of his own” does not apply to negotiable instruments.
Examples of Negotiable Instruments:
The following instruments have been recognized as negotiable instruments by statute or by usage or custom:
Bills of exchange;
Promissory notes;
Cheques;
Government promissory notes;
Treasury bills;
Dividend warrants;
Share warrants;
Bearer debentures;
Port Trust or Improvement Trust debentures;
Hindus, and;
Railway bonds payable to bearer, etc.
Examples of Non-negotiable Instruments:
These are:
Money orders;
Postal orders;
Fixed deposit receipts;
Share certificates, and;
Letters of credit.
Endorsement:
Section 15 defines endorsement as follows: “When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as negotiable instrument, he is said to endorse the same, and is called the endorser.”
Thus, an endorsement consists of the signature of the holder usually made on the back of the negotiable instrument with the object of transferring the instrument. If no space is left on the back of the instrument for the purpose of endorsement, further endorsements are signed on a slip of paper attached to the instrument. Such a slip is called “along” and becomes part of the instrument. The person making the endorsement is called an “endorser” and the person to whom the instrument is endorsed is called an “endorse.”
Kinds of Endorsements:
Endorsements may be of the following kinds:
Blank or general endorsement: If the endorser signs his name only and does not specify the name of the indorse, the endorsement is said to be in blank. The effect of a blank endorsement is to convert the order instrument into a bearer instrument which may be transferred merely by delivery.
Endorsement in full or special endorsement: If the endorser, in addition to his signature, also adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the endorsement is said to be in full.
Partial endorsement: Section 56 provides that a negotiable instrument cannot be endorsed for a part of the amount appearing to be due on the instrument. In other words, a partial endorsement which transfers the right to receive only a partial payment of the amount due on the instrument is invalid.
Restrictive endorsement: An endorsement which, by express words, prohibits the indorse from further negotiating the instrument or restricts the indorse to deal with the instrument as directed by the endorser is called “restrictive” endorsement. The indorse under a restrictive endorsement gets all the rights of an endorser except the right of further negotiation.
Conditional endorsement: If the endorser of a negotiable instrument, by express words in the endorsement, makes his liability, dependent on the happening of a specified event, although such event may never happen, such endorsement is called a “conditional” endorsement.
In the case of a conditional endorsement, the liability of the endorser would arise only upon the happening of the event specified. But they endorse can sue other prior parties, e.g., the maker, acceptor etc. if the instrument is not duly met at maturity, even though the specified event did not happen.
Negotiable Instruments: Definition, Characteristics, and Features!
#Features of Negotiable Instruments:
Negotiable Instrument, in law, a written contract or another instrument whose benefit can be passed on from the original holder to new holders. The original holder (the transferor) must countersign the instrument (as in the case of a cheque) or merely deliver it (as in the case of a bank note) to the new holder; the new holder is then entitled to the benefit of the instrument (in the case of a cheque, to the money from the bank; in the case of the banknote, to the sum promised on the note).
According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means,
“Promissory note, bill of exchange, or cheque, payable either to order or to bearer.”
Major features of negotiable instruments are:
The following features below are:
Easy Transferability:
A negotiable instrument is freely transferable. Usually, when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are not required while transferring a negotiable instrument.
The ownership is changed by mere delivery (when payable to the bearer) or by valid endorsement and delivery (when payable to order). Further, while transferring it is also not required to give notice to the previous holder.
Title:
Negotiability confers an absolute and good title on the transferee. It means that a person who receives a negotiable instrument has a clear and indisputable title to the instrument.
However, the title of the receiver will be absolute, only if he has got the instrument in good faith and for consideration.
Also, the receiver should have no knowledge of the previous holder having any defect in his title. Such a person is known as the holder in due course.
Must be in writing:
A negotiable instrument must be in writing. This includes handwriting, typing, computer print out and engraving, etc.
Unconditional Order:
In every negotiable instrument, there must be an unconditional order or promise for payment.
Payment:
The instrument must involve the payment of a certain sum of money only and nothing else.
For example, one cannot make a promissory note on assets, securities, or goods.
The time of payment must be certain:
It means that the instrument must be payable at a time which is certain to arrive. If the time is mentioned as “when convenient” it is not a negotiable instrument.
However, if the time of payment is linked to the death of a person, it is nevertheless a negotiable instrument as death is certain, though the time thereof is not.
The payee must be a certain person:
It means that the person in whose favor the instrument is made must be named or described with reasonable certainty.
The term “person” includes individual, body corporate, trade unions, even secretary, director or chairman of an institution. The payee can also be more than one person.
Signature:
A negotiable instrument must bear the signature of its maker. Without the signature of the drawer or the maker, the instrument shall not be a valid one.
Delivery:
Delivery of the instrument is essential. Any negotiable instrument like a cheque or a promissory note is not complete until it is delivered to its payee.
For example, you may issue a cheque in your brother”s name but it is not a negotiable instrument until it is given to your brother.
Stamping:
Stamping of Bills of Exchange and Promissory Notes is mandatory. This is required as per the Indian Stamp Act, 1899. The value of stamp depends upon the value of the pro-note or bill and the time of their payment.
Right to file suit:
The transferee of a negotiable instrument is entitled to file a suit in his own name for enforcing any right or claim on the basis of the instrument.
Notice of transfer:
It is not necessary to give notice of transfer of a negotiable instrument to the party liable to pay.
Presumptions:
Certain presumptions apply to all negotiable instruments, for example, consideration is presumed to have passed between the transferor and the transferee.
Procedure for suits:
In India, a special procedure is provided for suits on promissory notes and bills of exchange.
The number of transfer:
These instruments can be transferred indefinitely until they are at maturity.
Rule of evidence:
These instruments are in writing and signed by the parties, they are used as evidence of the fact of indebtedness because they have special rules of evidence.
