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Explain the nature of a Negotiable Instrument. |
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Answer» A negotiable instrument is transferable from one person to another without any formality, such as affixing stamp, registration, etc. When the instrument is held by holder in due course in the process of negotiation, it is cured of all defects in the instrument with respect to ownership. Though a bill, a promissory note or a cheque represents a debt, the transferee is entitled to sue on the instrument in his own name in case of dishonour, without giving notice to the debtor that he has become its holder. |
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