Types of Negotiable Instruments

Negotiable instruments include bill of exchange, promissory note, cheque, bank draft, pay order, hundis, railway receipt for goods, delivery order and government promissory note. All these are broadly classified into two major kinds. One is negotiable instrument by statute and the other is negotiable instrument by usage or custom. The former one is the instrument that was created legally and the latter one was through usage it has become a negotiable instrument. Here under, a detailed explanation about both the kinds and other types.

Characteristics of Negotiable Instrument

Negotiable Instrument is a document which can be freely used in a commercial transaction as well as in monetary dealings. There are two words in here negotiable and instrument. The former one means, the document is freely transferable from one person to the other person in return for a consideration. The latter word, instrument, means it is a written document through which a person gets a right or it is a right created in favor of a person. Here under are the characteristics of a negotiable instrument.

Different kinds of Companies

Company is an association of persons coming together with a common motive of doing business which is legal in nature to earn profits out of the same and share it among themselves as agreed. There are different kinds of companies that can be established to do business and earn profits. Kinds of companies we generally see are as follows;

What are the Rights of Unpaid Seller

The seller who has not received price of goods sold or the seller who has got his negotiable instrument dishonored will become Unpaid Seller. Sale of goods act, 1930 Section 45 to 55 read about the rights of Unpaid Seller. Those rights can be classified into two groups. They are as follows.

Types of Guarantee

The Indian Contracts Act defines Guarantee as a contract in which one promises to discharge the liability of the other upon the default of the latter. Creditor, debtor and the surety are the three parties to the contract of guarantee. This contract is formed by the consent of the all the three parties to the contract. Guarantee contract may be oral or written. The contract of guarantee is of different types depending on the contract’s contents and the nature of the same. Here under are the different types of guarantee contracts.

Company Registration Documents

A company is an entity basically formed by group of individuals. It is a place of work formed by following a set of rules and regulation formulated by the state. After all the formalities are fulfilled by the promoters of the business, the registrar of companies issue the Certificate of Incorporation. Post that, the company is formed and business commences. Here under mentioned are some necessary documents needed for the formation of the company.

What is Insurance Premium

Premium is a payment or a consideration, may be kind, paid to the insurer by the insured for the risk undertaken by the former. Usually, the premium is paid in the form of cash. The Premium is fixed by the insurer. The insurer takes into account the contributions he would receive and the average losses that could possibly occur while coming to an estimation while fixing the premium. The insurer takes into account his profits too into the account apart from contributions and other losses while fixing the premium to be paid by the insured.