The history of business transaction drives back to the simple business contract
of barter. Reliance on commercial paper of
today is a huge contribution to any business deals and contracts. Take for
example a simple business trade of buying a merchandise and the buyer would pay
a check drawn from his/her checking account, huge trust given by the seller is
an automatic binding agreement whereby failure of the buyer to supply the equal
amount of money written in the negotiable instrument is subject to legal argument. Further importance of commercial paper
relates to the contract’s importance equivalent to a monetary standard. By law, commercial paper is as good as
payment for any good sold in any given public market. In addition, International law and commerce
are collaborating commercial paper formats to simplify the trade transactions
in terms of International Business.
Uniformity of commercial codes is the fundamental key to realize a global
realization of International law and commerce.
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| SAMPLE OF E-NEGOTIABLE INSTRUMENT PROCESS |
KINDS OF NEGOTIABLE INTRUMENTS TO BE CONSIDERED IN INTERNATIONAL
COMMERCE AND TRADE:
Promissory Notes:
Is the simplest form of commercial paper that the maker of the note
will promise to payee in a suggested time and most importantly the right
monetary amount to be paid to the payee.
Above all, both parties must have a written authentic signature to
verify the originality of the contract being stipulated.
Certificates of Deposit:
A Certificate of Deposit is issued by the third party financial
institution represented by a bank to verify the containment of the instrument. There are two important aspects that
commercial people must consider in terms of certificates. First, is the
acknowledgement of the bank or the financial institution that the instrument is
true and being written in good faith. Second, is the written promise by the bank
written in the certificate that the amount would be paid in a certain date or
time.
Draft:
A draft involves three parties commonly known as the drawer, drawee,
and the payee. The drawer usually orders
the drawee to pay a certain amount to the payee or the person specified to
receive the amount of money.
Check:
A check is also a kind of draft payable only on demand and maybe drawn on
a bank. The bank may be considered as
the drawee or the person to whom the order to pay is addressed.
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