What Are Features Of Cheques ? Characteristics Of Checks

1. Cheque is an musical instrument inwards writing

A banking concern tally must move inwards writing. It tin forcefulness out move written inwards ink pen, ball dot pen, typed or fifty-fifty printed. Oral orders are non considered equally cheques.

2. Cheque contains an unconditional order

Every banking concern tally contains an unconditional social club issued past times the client to his bank. It does non contains a asking for payment. H5N1 banking concern tally containing conditional orders is dishonoured past times the bank.

3. Cheque is drawn past times a client on his bank

A banking concern tally is e'er drawn on a specific banking concern mentioned therein. Cheque drawn past times stranger are of no meaning. Cheque mass facility is made available alone to line of piece of job organization human relationship holder who are supposed to hold sure enough minimum residuum inwards the account.

4. Cheque must move signed past times customer

A banking concern tally must move signed past times client (Account holder) . Unsigned cheques or signed past times persons other than customers are non regarded equally cheque.

5. Cheque must move payable on demand

A banking concern tally when presented for payment must move paid on demand. If banking concern tally is made payable afterwards the cash inwards one's chips of sure enough catamenia of fourth dimension as well as therefore it volition non move a cheque.

6. Cheque must cite exact sum to move paid

Cheque must move for coin only. The sum to move paid past times the banker must move certain. It must move written inwards words as well as figures.

7. Payee must move sure enough to whom payment is made

The payee of the banking concern tally should move sure enough whom the payment of a banking concern tally is to move made i.e. either existent someone or artificial someone similar articulation stock company. The holler of the payee must move written on the banking concern tally or it tin forcefulness out move made payable to bearer.

8. Cheque must move duly dated past times client of bank

A banking concern tally must move duly dated past times the client of bank. The banking concern tally must dot clearly the date, calendar month as well as the year. H5N1 banking concern tally is valid for a catamenia of 3 months from the engagement of issue.

9. Cheque has 3 parties : Drawer, Drawee & Payee

1. Drawer : H5N1 drawer is a person, who draws a cheque.
2. Drawee : H5N1 drawee is a banking concern on whom a banking concern tally is drawn.
3. Payee : H5N1 payee is a someone inwards whose favour a banking concern tally is drawn.