Under Section 73 (1) of Bills of Exchange Act 1949 (Act 204), a
cheque (
cheque in British English;
check in American English) is defined as:
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Section 73 (1) of Bills of Exchange Act 1949 (Act 204)
A cheque is a bill of exchange drawn on a banker payable on demand. |
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By virtue of Section 3 (1) of Bills of Exchange Act 1949 (Act 204), a
bill of exchange is defined as:
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Section 3 (1) of Bills of Exchange Act 1949 (Act 204)
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to, or to the order of, a specified person, or to bearer. |
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If both sections are read together, a
cheque may be defined as:
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An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the banker to pay on demand a sum certain of money to or to the order of a specified person or bearer. |
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Notes
- Drawer means the person who draws a cheque.
- Drawee banker or paying banker means the banker on whom the cheque is drawn.
- Payee means the person to whom the cheque is drawn payable.
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