Question: What is Endorsement ?
Answer:
Ø Putting signature on the back of the instrument by the payee for negotiation.
Ø Only payee can endorse a cheque.
Question: What is Allonge ?
Answer:
A paper attached to a negotiable instrument to enable writing endorsements when the back of the bill is full. An allonge is rare because bills of exchange are no longer very common.
Question: What is Payment in due Course ?
Answer:
Payment in accordance with the
Ø Apparent tenor of the instrument
Ø Payment in good faith & with out negligence.
Ø Payment to a person who is entitled to receive the money.
Question: Who is Holder?
Answer:
Ø Payee (who is entitled to receive the money)
Ø In possession of the instrument
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