Definition & Characteristics of Cheque

Cheque is a vital debatable instrument which can be exchanged by negligible hand conveyance. cheque is utilized to make protected and helpful instalment. It is less hazardous and the risk of misfortune  is minimized.

"Cheque is an instrument in written holding an unconditional order, addressed to a banker, sign by the individual who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain individual or to the bearer of instrument."

Cheque is a bill of exchange drawn on a bank, payable on demand. (L E Davis)

A cheque is an order written by a drawer to a banker to pay on demand a specific sum of money to the parson or persons named as payee on the cheque. ( J L Hanson)

A cheque is a bill of exchange drawn on a specific banker and not expressed to be payable otherwise than on demand. (G S Lall)

Cheque is a preprinted form on which instructions are given to an account holder to pay a stated sum to a named recipient. (Oxford Dictionary of Business)

At last after above discussion the followings Features are caught on :

★ Written order on bank.

★ Signed by drawer.

★ Payable on demand. 

★ Bill of exchange. 

★ Pluralities of parties exist to it. such as- orderer or drawer or payee, drawee or bank, third party or       bearer, endorse, holder, holder in due course, endorser etc.

★ Certain sum money. 

★ Drawing date.

★ Payee is referred here.

★ payable by legal tender money. 

★ Presentation on particular branch.

★ Proof able document.  

★ safety &  security. 

★ Higher or lower probability of fraud.

★ Alternative use of money.