A cheque is a negotiable instrument drawn on a particular banker. 

Features:

(i) Instrument in Writings: A cheque or a bill or a promissory note must be an instrument in writing. Though the law does not prohibit a cheque being written in pencil, bankers never accept it because of risks involved. Alternation is quite easy but detection is impossible in such cases.

(ii) Unconditional Orders: The instrument must contain an order to pay money. It is not necessary that the word ‘order’ or its equivalent must be used to make the document a cheque. It does not cease to be a cheque just because the world ‘please’ is used before the word pay. Further the order must be unconditional.

(iii) Drawn on a Specified Banker Only: The cheque is always drawn on a specified banker. A cheque vitally differs from a bill in this respect as latter can be drawn on any person including a banker. The customer of a banker can draw the cheque only on the particular branch of the bank where he has an account.

(v) A Certain Sum of Money Only: The order must be for payment of only money. If the banker is asked to deliver securities, the document cannot be called a cheque. Further, the sum of money must be certain

(v) Payee to be Certain: The cheque must be made payable to a certain person or to the order of a certain person or to the bearer of the instrument. The word, person includes corporate bodies, local authorities, associations, holders of office of an institution etc.

(vi) Signed by the Drawer: The cheque is to be signed by the drawer. Further, it should tally with specimen signature furnished to the bank at the time of opening the account.