Commentary

4 Varieties of instruments

BILLS OF EXCHANGE vol 4(1)

4 Varieties of instruments

2: INSTRUMENTS

4 Varieties of instruments

There are different types of instrument. It is a question of mercantile usage and of statute whether a document is an instrument, and if so, whether it is negotiable. A negotiable instrument may perform more than one function. Bills of exchange and promissory notes are simply instruments of credit. Cheques are bills of exchange and also mandates from the drawer to his banker to pay money to the payee or to his order as the case may be. The form of the instrument is therefore all important. A cheque drawn in favour of John Smith

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