Negotiable Instruments: Cheques
A negotiable instrument is a document which guarantees that the bearer of such a document will receive the sum of money specified in it either on demand or within a stipulated time mentioned in the document.
Cheque
A cheque is a document issued by an individual to his or her bank, directing them to pay the person whose name is mentioned in the document the sum specified in it for such a document to be valid, it is important that the person issuing it has an account in the said bank. An issuer of the cheque is called drawer, and the one to whom it is issued is the drawee.