1. Cheque is an musical instrument inward writing
A tally must last inward writing. It tin laissez passer on notice last written inward ink pen, ball dot pen, typed or fifty-fifty printed. Oral orders are non considered equally cheques.
2. Cheque contains an unconditional order
Every tally contains an unconditional social club issued yesteryear the client to his bank. It does non contains a asking for payment. H5N1 tally containing conditional orders is dishonoured yesteryear the bank.
3. Cheque is drawn yesteryear a client on his bank
A tally is ever drawn on a specific depository fiscal establishment mentioned therein. Cheque drawn yesteryear stranger are of no meaning. Cheque mass facility is made available solely to trouble organization human relationship holder who are supposed to keep certainly minimum repose inward the account.
4. Cheque must last signed yesteryear customer
A tally must last signed yesteryear client (Account holder) . Unsigned cheques or signed yesteryear persons other than customers are non regarded equally cheque.
5. Cheque must last payable on demand
A tally when presented for payment must last paid on demand. If tally is made payable afterward the death of certainly menstruum of fourth dimension hence it volition non last a cheque.
6. Cheque must yell exact sum to last paid
Cheque must last for coin only. The sum to last paid yesteryear the banker must last certain. It must last written inward words in addition to figures.
7. Payee must last certainly to whom payment is made
The payee of the tally should last certainly whom the payment of a tally is to last made i.e. either existent somebody or artificial somebody similar articulation stock company. The yell of the payee must last written on the tally or it tin laissez passer on notice last made payable to bearer.
8. Cheque must last duly dated yesteryear client of bank
A tally must last duly dated yesteryear the client of bank. The tally must dot clearly the date, calendar month in addition to the year. H5N1 tally is valid for a menstruum of iii months from the appointment of issue.
9. Cheque has 3 parties : Drawer, Drawee & Payee
- Drawer : H5N1 drawer is a person, who draws a cheque.
- Drawee : H5N1 drawee is a depository fiscal establishment on whom a tally is drawn.
- Payee : H5N1 payee is a somebody inward whose favour a tally is drawn.
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