Crossing of cheques
In general crossing, the cheque bears across its face an addition of two parallel transverse lines and/or the addition of words ‘and Co.’ or ‘not negotiable’ between them. In the case of general crossing on the cheque, the paying banker will pay money to any mesmmdaten.comted Reading Time: 5 mins. General Crossing: When across the face of a cheque two transverse parallel lines are drawn at the top left corner, along with the words & Co., between the two lines, with or without using the words not negotiable. When a cheque is crossed in this way, it is called a general mesmmdaten.comted Reading Time: 2 mins.
The crossing of Cheque means that the specific cheque can only be deposited straightway into a bank account and cannot be instantly cashed by a bank or any credit institution. This ensures a level cheqie security what is the population in atlanta ga the payer since it requires the funds what is general crossing of cheque be handled through a collecting bank.
An open or crlssing cheque is the one for which the banker has to pay cash across how to make volcano eruption project counter when it is presented by the customer. Basically, there are 3 typ es of cheque crossing :. General crossing on a cheque can be made by inserting two parallel lines on the left-hand i corner of a cheque.
It is one of the common typ es of cheque crossing. In a special crossing, the paying banker will pay the sum only to the banker whose name is stated in the cheque or to his agent. Restrictive crossing involves the crossing of how to introduce a quotation cheque through two parallel lines on the left corner of a cheque. According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque.
It provides higher protection to the us of the cheque, in a case; a cheque is misplaced or lost. A cheque is said to be bounced or dishonoured by non-payment the order 1886 what is it about the drawee of cheque makes a default in payment in when cheque is presented to him for payment.
In case of default by the drawee i. Bankerthe drawee shall compensate the drawer for loss caused to him. The liability of a drawee arises by non-payment, if the following three conditions are fulfilled ahat the dishonour of cheque:. On the dishonour of the cheque, the drawer is punishable with imprisonment up to two years or fine not exceeding twice the amount of cheque or both if the following conditions are satisfied:.
Click on Topic to Read. What is Business Law? Business Law is also known as Commercial law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. Also Read : 1. Business Law Definition 2. Business Whatt Meaning 3. Business Law of India. The Indian Contract Act is divisible into two parts. The iz part Section deals with the general principles of the law of contract and therefore applies to all contracts irrespective of their nature.
The second part Sections deals with certain special kinds of contractsnamely contracts of Indemnity and Guarantee, Bailment, Pledge, and Agency.
Also Read: 1. Essential Elements of croossing Valid Contract. It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale. Delivery of Goods 2. Types of Delivery 3. Rules for delivery of goods. Sales of Goods Act came into force on 1st July It extends to the whole of India.
It does not affect rights, interests, obligations and titles acquired before the commencement of the Act. The Act deals with the sale but not with mortgage or pledge of the goods. Read Complete: 1. Essentials chqeue Valid Sales 2. How the Contract of Sale Comes About 3.
Difference Between Conditions and Warranties. Negotiation of an instrument is the process by which the ownership of an instrument is transferred from one person to another.
Methods of the negotiation of instrument 2. Definition of Negotiable Instrument 3. Meaning of Negotiable Crosaing 4. Characteristics of a Negotiable Instrument generral. Presumptions as to Negotiable Instruments 6. Classification of Negotiable Instruments geeneral. Types of Negotiable Instruments. What type of mollusk is a squid Read: Types of Endorsement 1.
Blank or general endorsement 2. Special or full endorsement 3. Partial endorsement 4. Chesue endorsement. Promissory Noteon the other hand, is a promise to pay a certain amount of money within a stipulated period of time.
And the promissory note is issued by the debtor. Characteristics crlssing a Promissory Note 2. Bill of Exchange Parties. Bill of exchange is an instrument ordering the debtor to pay a genrral amount within a stipulated period of time. Bill of exchange needs to be accepted in order to call it valid or applicable.
And the bill of exchange is issued by the creditor. Example of Bill of Exchange 2. Features of Bill of Exchange 3. What is Cheque? Characteristics of a Cheque 2. Parties of Cheque 3. Truncated Cheque 4. Cheque in electronic form 5. Presentment of truncated cheque. Go On, Share article with Friends. Did we miss something in Business Law Note? Come on! Tell us what crssing think about our article on Types of Cheque Crossing Business Law in the comments section.
Save my name, email, and website in this browser for the next time I comment. Skip to content Post last modified: 26 January Reading time: 7 mins read. Table of Contents 1 What is Crossing of Cheque? Types of Cheque Crossing. Dishonour of Cheques. Sharing is caring More. Next Post What is Promissory Note? Meaning, Characteristics, Parties. Definition, Characteristics, Types, Parties 2 April Leave a Reply Cancel reply Comment. Enter your name or username to comment.
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General Crossing of cheques is defined in Section of the NI Act, According to this section, crossing of a cheque means drawing across the face of a cheque two parallel transverse lines with or without the words, “And Company” or “Not Negotiable” or . Jan 26, · General crossing on a cheque can be made by inserting two parallel lines on the left-hand top corner of a cheque. Between the two parallel transverse lines the options are to add certain words like – ‘and company’, ‘& company’ or ‘not negotiable’. It is one of the common typ es of cheque mesmmdaten.comted Reading Time: 6 mins. Sep 15, · A general crossing consists of two parallel lines drawn transversely the front side of the cheque with or without the word “& CO”. The effect of this cross leads the said cheque may not be cashed at the counter of the bank but must be paid into bank accounts for mesmmdaten.comted Reading Time: 3 mins.
The practice of crossing a cheque seems to have originated in England when cheques were likely to be stolen by robbers who often robbed mail carried in slowly moving coaches. The crossing of cheques gradually reduced the number of payments to the wrongful holders of the cheque.
With the passage of time, the crossing of cheques came to have legal recognition. Cheques may be crossed by three persons. These are the drawer, holder and bankers, according to section of the Act There are three main types of check crossing.
The effect of this cross leads the said cheque may not be cashed at the counter of the bank but must be paid into bank accounts for collection. A special crossing consists of the name of a particular bank written across the face of the cheque. The effect of these types of crossing is that it will be collected by the particular bank only. The act provides only two types of crossing mentioned as a general and special crossing.
So these types of the crossing of cheques direct the banker to be credited the specific amount into the account of the payee whose name is mentioned on the cheque or between the equivalent lines. If proceeds are credited to some other accounts, the collecting banker will be held responsible. The following parties have the right to cross a cheque;. It is possible that payment of a bearer or even of an order cheque is made or received to the wrong person.
In this case, the bank has got no responsibility except for the order cheque. Hence the main objective of the crossing is to make sure that the payment is made or credited to the right person. In case of any fraud or wrong payment, it is easy to detect the person or party receiving the wrong payment just by checking the record of the bank, because the said cheque is deposited, collected and posted in the bank ledger through a bank account of the person concerned.
The other objective of crossing is that a large amount of money is transferred from one person or place to another, without any risk of cash involved in the payment.
The only disadvantage of crossing is that sometimes it becomes inconvenient for the holder of a cross cheque to get the cash at once if he is urgency. If the cross cheque is of the same branch or of a local branch, then the inconvenience is not so much as compared to the out-station cross cheque, in which the mail process involves and the efficiency of the other branch in releasing payments. Home » What is Crossing of Cheques? Explain types of Check Crossing. Visit us to find here free business notes of all the subjects of B.