Topic 1
DISCUSS THE RIGHTS OF PARTIES THAT INVOLVE IN THE CONTRACT OF CROSSING CHEQUE. SUPPORT YOUR ANSWER WITH PROVISON OF LAW.

Based on Section 73 Bills of Exchange of Act 1949, cheque can be defined as a bill of exchange drawn on a banker payable on demand. It is also an important negotiable instrument which can be transferred by mere hand delivery. By applying cheque, the process was actually much safer and more convenient for payment.
To protect and safeguard the cheque from any harmful, check can be protected with crossing the cheque by the drawer (owner of the cheque), drawee (bank) and payee (the receiver). According to Section 78, crossed cheque is part of material cheque ; it is invalid for someone to evacuate the crossed unless the Act give permission to make any changes on cheque. By, crossing the cheque the person who wants to claim the money, cannot encashed money at the cash counter of a bank because it can be only be credited the money in payee’s account. The bank can easily detect to whose the money received by securing the payment to avoid the money goes wrong. Crossing cheque were divided in to four types of crossed cheque which are general crossing cheque, special crossing cheque, not negotiable cheque and “accounts payee only” crossed cheque.
General Crossing Cheque
General crossing can be defined from Section 76(1) as the cheque was crossed generally where it bears across its face and addition of –
a) the words “ and company” or any abbreviation thereof between two parallel transverse lines, either with or without the words “not negotiable” ; or
b) two parallel transverse lines simply, either with or without the words “Not Negotiable”,
In addition constitutes a crossing, the cheque is crossed generally.It is also a summons to bankers to receive the payment from payee’s accounts only. The effect regards from general