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Negotiable Instruments
Download Indian Negotiable Instruments templates: bills of exchange, promissory notes (demand/installments/joint), endorsements, foreign bills, and consideration receipts.
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Quick Overview
All templates are provided for reference and should be reviewed by legal professionals before use.
Frequently Asked Questions
Common questions about Negotiable Instruments legal templates
What templates are included in the Negotiable Instruments directory?
Bills of exchange (after date, after sight, on demand, foreign, special cases) and promissory notes (on demand, installments, joint/joint & several, with consideration), endorsements, and consideration receipt.
What is a bill of exchange under Indian law?
A written, unconditional order by the drawer to the drawee to pay a certain sum to the payee or bearer, on demand or at a fixed future time, per the Negotiable Instruments Act, 1881.
How does a promissory note differ from a bill of exchange?
A promissory note is an unconditional written promise by the maker to pay a certain sum to a payee; a bill is an order to a third party (drawee) to pay.
When is a bill ‘payable after sight’ used?
When the due date is calculated from the date of acceptance or noting for non-acceptance; it requires presentment for acceptance.
Can a bill be payable to any one of several payees?
Yes. The instrument can specify payment to any one of several named payees; drafts include proper wording to avoid ambiguity.
What is a general endorsement?
An endorsement in blank that makes the instrument payable to bearer, enabling transfer by mere delivery unless further endorsed specially.
What is a joint and several promissory note?
Multiple makers promise to pay both jointly and each severally, allowing the holder to recover the full amount from any one or more makers.
What details should a promissory note include?
Clear promise to pay, amount in figures/words, payee, date/place, interest (if any), due date or on-demand clause, stamp, and signatures of maker(s).
Are there stamp duty requirements for these instruments?
Yes. Bills and promissory notes require stamping as per the Indian Stamp Act/state schedules; under-stamping affects enforceability.
What is a receipt of consideration for a promissory note?
A separate acknowledgment confirming the lender paid the consideration for which the promissory note is executed, useful for evidentiary clarity.