Hacker Culture and Cyber Security Issues Assignment

Hacker Culture and Cyber Security Issues - Assignment Example Black hat hackers are the most daring because they use their knowledge to obtain information and data for their own personal gains or with the intention of disrupting network systems. These are the hackers that have given hacker culture a bad reputation in America because they have been involved in activities of getting military secrets and accessing banks secret information. On the other hand, white hat hackers use their knowledge and skills to develop computer securities while grey hat hackers are mainly motivated by money. In this new era of digital, cyber crime is the most imperative type of crime that worries many people around the world. Government agencies, financial institutions, businesses and other entities that store their data and information in digitals should be aware of possible breaches of security in their data. This is because very sensitive data such as financial accounts and social security can be accessed and manipulated by other people with wrong intentions. The se people commonly referred as hackers use their outstanding knowledge to find out weaknesses in computer networks. Multitude of reasons such as challenge, profit and protest is what motivates them to cracking into other people’s computer system to get information. ... In addition, the advancing technology has increased international treaty of crimes committed through computer networks and internets (Fideral Bereau of Investigation, 2010). Some of the crimes that take place in the internet are computer related fraud, violation of internet security, child pornography and information hacking. Although many people do not know much about hackers, they are aware of the cruel damage they can accomplish in computer networks. This is because they have the capability of circumventing security to get into the unauthorized systems. Today’s cyber world has been facilitated by different hacker cultures which are made of both good and bad hackers. Accessing information and data from network systems and selling in the black market has become a way of life for many hackers in the nation. They have reshaped their own place in the current technological societies by robotic lifestyle (Seltzer Law, 2012). Hacker culture, which was considered as part of undergro und activity, is now part of the modern societies that consist of very educated criminals. This is because nowadays due to growth of technology at an alarming rate, societies are getting accustomed to hackers’ threats. This has created security concerns for businesses, public institutions and individuals across the world. Although the government is making positive steps to deter cyber crimes, it is unable to keep the pace of groups and individual hackers (Federal Bureau of Investigation, 2011). The pledge of computer system hacking was first developed by students from Massachusetts Institute of Technology (MIT) in 1800s. They created a blueprint that facilitated their skills to break through telephone companies. These skills were then developed and allowed the students to break into

Environmental Impact of Ship Breaking Industry

Environmental Impact of Ship Breaking Industry Introduction: We are going to look into Ship breaking industry around the world and its impact on the environment, health and safety, social values and human rights issues. Ship breaking is the course of dismantling an archaic vessels structure for scrapping or recycle, mean to be conducted at a pier or dry dock to dismantling ship, it includes various activities, from removing all gears, parts and equipment to cutting down the ships substructure. Ship breaking is a difficult course of action due to the structural complication of ships. There are thousands of people involved in this industry. So many issues come up during breaking ships which remains beyond our knowledge. We are trying to demonstrate these serious issues and overcome these problems. Increasing demand of raw materials for re-rolling mills and other purposes and negative impacts on coastal environments, ship breaking activities present both challenges and opportunities for coastal zone management in a holistic manner. These activities are example of both the potentialities and the dangers of an increasingly globalised economy. It has achieved a good fame for being profitable but it cost huge environmental damage. A variety of disposable materials and refuse are being discharged from scrapped ships are often mixed with the beach soil and sea water which in turn has a negative impact on our coastal environment and biodiversity. However, accidents are normal phenomena in the ship breaking yards. Over the years more than 1000 workers have lost their lives and were seriously injured. Due to unconsciousness and lack of government patronization, the activities are facing several internal and e xternal problems. Considering all these facts, a distinct and well-balanced policy is necessary for sustainable ship breaking activities. Aims Objectives: There are some aims and objectives have been set to conducting this research: Aims †¢ Solve the serious issues †¢ Set proper guidelines †¢ Make awareness of the workers †¢ Keep the child workers away †¢ Awareness of the government †¢ Finding pros/cons Objectives †¢ Finding the problems †¢ Co-operate with the local authority †¢ Training for the workers †¢ Education for all †¢ Collecting data and analyze them †¢ Implement the outcomes of the research Environmental pollution: According to the report of Jim Puckett (International Conference on the Safe and Environmentally Sound Recycling of Ships, 2009), the Beaching Method whereby ships are run grounded on ocean beaches for cutting and breaking apart in the intertidal zone can never be achieved in a manner which is environmentally noise or shielding of human health. Careful analyses of the intrinsic characteristics of beaching operations are conclusive that no amount of prescriptive improvements or protections can remedy the four fatal characteristics of intertidal beaching operations: * there is the impossibility of containing pollutants on a tidal beach where hulls of ships are often breached accidentally or by cutting, or toxic paints erode or are abraded sending persistent organic pollutants, heavy metals and oils onto the beach and into the seawater; * due to a shifting and soft wet tidal sand surface, there is the impossibility of rapidly bringing emergency response equipment, including fire-fighting equipment and vehicles, ambulances and cranes alongside the ship, to assist or remove persons hurt inside the hull; * the impossibility of allowing cranes to work alongside to lift heavy cut sections of a ship and thereby preventing heavy cut sections from being subject to gravity, shifting or falling directly into workers or into the marine environment; and * There is the absolute incompatibility of conducting hazardous waste management operations (which is what they are as long as ships contain hazardous wastes) in the ecologically delicate and vital coastal zone. Puckett revealed that these fatal flaws of the beaching method inevitably will result in causing avoidable death and pollution and thus make a mockery of the application of Regulation 19 of this Convention. No amount of band-aid guidelines and criteria can cure the malignancy inherent in beaching operations. To ask Parties to prevent adverse effects to human health and the environment from massive toxic ships on an intertidal beach already makes the fulfilment of this objective impossible. However the worst outcome is that by not drawing a clear line at the outset, this fatally flawed method will be legitimized, millions of dollars will be thrown into trying to mitigate the inherently inappropriate and dangerous working platform and the IMO will have succeeded in perpetuating death and pollution for many years to come. Hazardous activities: Ship breaking activities are being condemned as the whole process entails a series of risky tasks and as a depot of hazardous substances, which pose threats to the ambient environment and working people. Depending on their size and function, scrapped ships have an unloaded weight of between 5,000 and 40,000 tonnes (an average of 13000+), 95% of which is steel, coated with between 10 and 100 tonnes of paint containing lead, cadmium, organ tins, arsenic, zinc and chromium. Ships also contain a wide range of other hazardous wastes, sealants containing PCBs; up to 7.5 tonnes of various types of asbestos; several thousand litres of oil (engine oil, bilge oil, hydraulic and lubricant oils and grease). Tankers additionally hold up to 1,000 cubic meters of residual oil. Most of these materials are defined as hazardous waste under the Basel Convention. In Asia old Ships containing these materials are being cut up by hand, on open beaches, under inhumane working conditions. Experts are unanimo us in their opinion that ship breaking is a high-risk industry. Paul J. Bailey criticized in his ILO discussion papers (2000) that By any standards, the demolition of ships is a dirty and dangerous occupation. The ship breaking hazards generally fall into two categories: intoxication by dangerous substances and risk of accidents on the plots. Violations of Human and labour rights: Be short of professional health and safety standard, personal or limited of training protection equipment provided. †¢ Limited or no access to emergency services, compensation when a worker is injured or killed on the job, and treatment. †¢ Less than bare minimum wages. †¢ Child labour uses. †¢ Wide range of working hours without right to overtime, annual leaves or sick. †¢ Short of job security: there is no pay where no work. †¢ No right to form or join or any trade union. In the most of the shipyards, workforces are being privileged of their human rights. They work under dangerous situation however they have no right of entry to job security, a take-home pay or safety kit. OHS, accidents and diseases: Over the last twenty years more than 400 workers have been killed and 6000 seriously injured according to the Bangladeshi media. These are the ones that have been reported. The explosion of the Iranian tanker TT Dena on 31st May 2000 alone is said to have caused 50 deaths. To this toll, the thousands of cases of irreversible diseases which have occurred and will continue to occur due to the toxic materials that are handled and inhaled without any precautions or protective gear need to be considered. On average, one worker dies in the yards a week and everyday a worker is injured (End of Life Ships: the Human Cost of Breaking Ships). It seems like nobody really cares: ship breaking workers are easily replaceable to the yard owners: if one is lost they know another 10 is waiting to replace him due to the lack of work. The Government collects the taxes and turns a blind eye. Workers are not aware of hazards to which they are exposed. The overwhelming majority of workers wear no protecti ve gear and many of them work barefoot. There is hardly any testing system for the use of cranes, lifting machinery or a motorized pulley. The yards re-use ropes and chains recovered from the broken ships without testing and examining their strength. There is no marking system of loading capacity of the chains of cranes and other lifting machineries. Consequently, workers suffer from lung problems which cause temporary loss of working capacity. The hatches and pockets of vessel may contain explosive or inflammable gases. The cutters, if they understand from experience, drill small holes in order to release gases or fumes. This still however, often cause severe explosions. Gas cutters and their helpers, cut steel plates almost around the clock without eye protection. This leaves their eyes vulnerable to effects of welding. They do not wear a uniform and most dont have access to gloves and boots. Those that are unskilled carry truck able pieces of iron sheets on their shoulders and th ere are no weight limits to the sheets they carry. Usually, these workers carry weights far above the limit prescribed in the Factories Act and Factories Rules. The beaches are strewn with chemicals and toxic substances, small pieces of pointed and sharp iron splinters causing injuries. Workers enter into the areas without wearing or using any protective equipment. Occupational health and safety is clearly not a priority for the owners and as for the workers their desperate need to find employment to support their families means that their livelihoods take precedence over their lives. Treatment and compensation: When there is an injury some immediate treatment may be given but there is no long term treatment for those who have a long term or permanent injury. In terms of compensation, only a nominal amount of compensation given and often only when there is public pressure. When a worker becomes disabled by a major accident, he gets a maximum of 10 to 15 thousand taka (1 USD=71 taka) and forced back to his home district. In most cases a worker will only get transportation costs to go back to their home district. When a worker killed in an accident, the contractor, who is responsible for the workers, will only pay the costs of sending the body back to the victims family and arranging for their burial. In the case of local workers from the area, if they die on the job, their family receives more than 50,000 taka as compensation. This is mainly due to the fact that the yard owners and contractors cannot avoid the locals who yield some power and pressure them. Prior to 2006, the labour laws in Ba ngladesh had a lot of limitations. The Workers Compensation Act 1965, only 30,000 taka was proposed for a 100% disable worker and 21,000 taka for dead workers family. The recently passed Labour Law Act 2006 now stipulates that a 100% disabled worker will receive 100,000 taka and a deceased workers family will receive xxx taka. Child labour: In Bangladesh, most poor families are more or less dependent on the childrens income for survival. The Bangladesh Shishu Adhikar Forum (BASF) has identified 430 risky jobs. Within these 67 professions are classified as very much risky and 11 are classified as dangerous. Ship breaking is falls in the latter. YPSAs baseline survey in 2003, 10.94% of the labour force is made up with children (age up to 18). Most of 5the children come from the northern regions of Bangladesh. It was noticed that ship breaking contractors prefer to recruit children as they are less expensive than their adult counterparts. The children work mainly as gas cutters assistants and move small iron pieces from one place to another. They either work in the yard from sunrise to sunset or do the night shift. On average they receive 50-60 BDT a day for their efforts. There are no educational or recreational facilities. Conclusion: Nobody seems to really care about the workers and their families. Neither the ship owners, nor the exporting countries, the ship breakers or the local governments. They are simply numbers that can be replaced. There is an urgent need to interconnect the reality on the ground, the dominating economic interests of the shipping industry and the discussions taking place at the international level, in order to change the working and environmental conditions on the yards. References: Akther, M. et al, YPSA (2005). Workers in Shipbreaking industry: a base line survey of Chittagong (Bangladesh), chapter 4, pp. 29-36. Bailey, P. J. (2000). Is there a decent way to break up ships? Sectoral activities programme discussion paper, International Labour Organization (ILO). Retrieved at 03:00 (GMT) Aug 22, 2009, from http://www.ilo.org/public/english/dialogue/sector/papers/shpbreak/index.htm Dr. Hossain, Md. M. M. Islam, M. M. (2006). Ship Breaking Activities and its Impact on the Coastal Zone of Chittagong, Bangladesh: Towards Sustainable Management, Young Power in Social Action (YPSA). pp 13-17 Vardar, E. et al, Greenpeace-FIDH (2005), End of life ships: the human cost of breaking ships, Human rights report, Puckett, J. (2009). The NGO platform on Ship breaking on the Beaching Method, Presented at the International Conference on the Safe and Environmentally Sound Recycling of Ships.

Mistakes of Mankind Exposed in Quinns Ishmael :: Quinn Ishmael Essays

Mistakes of Mankind Exposed in Quinn's Ishmael Most humans are confused. Some know what the problem is, but most haven't even realized something is wrong. The novel Ishmael by Daniel Quinn is an attempt to bring about awareness of the mistakes that people have made and have continued to repeat through the course of human history. At its core, the story has two main characters: a teacher and a student. The teacher represents a solution to the destructive road that mankind has been traveling down and the student represents us: eager to mend our ways but apprehensive about the changes that will occur. The lesson of this book is that each one of us can make changes that will directly enhance our personal lives, and begin the great task of changing how all humans view and live out their lives. The wise and almost omnipotent teacher that had the task of changing the course of human history is, as one might imagine, a very special person. He had been watching us for a long time and was ready to share his knowledge of the human race and its inherent flaws. This "savior" just happened to be a gorilla named Ishmael. It was for that reason that a very special student was required to learn his lessons. "Teacher seeks pupil. Must have an earnest desire to save the world. Apply in person"(4). This rather awkward request appeared in the personals section of the newspaper. Because the bulk of the novel is narrated through the first- person perspective of the man who answers this ad and becomes the enlightened student, the reader never learns his name. However, he/she is exposed to many important aspects of the student and his motivations. One learns that decades ago he had actually been looking for such a teacher during the children's revolt of the sixties and seventies but finally concluded that no ne existed and that the new era was never going to begin. This realization had embittered him to the point that seeing such a blatant ad (in the newspaper of all places!) after he had given up hope outraged him. His motivation for answering the ad was actually a simple desire to find out what crook was behind the outrageous request so that he could put

Axe commercial

The current Axe print advertisement in question is part of a global campaign to promote its new line of â€Å"Peace† products, trying to strike down the sexist image It had previously. Axe partnered with a non-profit organization called Peace One Day and alms to promote peace In the world by an anti-war agenda and also gender equality. An end to the gender wars. This Is an example of using polymers through the slogan â€Å"Make Love, Not War†, which Is the use of the phrase to Incorporate multiple meanings.The ad is directed at both males and females, unlike other Axe advertisements in the past, and so both men and women are considered the inscribed reader. According to the deputy executive director of Axe in London, David Kolkhoz, â€Å"It's a theme we've been playing with for a while now, the equilibrium of the sexes. This is Just the first time we've done it in this more serious way. † (Nude, 2014, Para. 9) The idea that Axe is moving into different territory by attempting to equalize men and women sexually is emergent discourse.Scripts of lust and hyper sexuality are giving way to scripts of â€Å"Make Love, Not War†. This can be seen as a desirable outcome for a female audience of the Peace products. If this Is a successful outcome, women's views on Axe will shift, they will purchase the products for their partners and profits will Increase. When the deputy executive director was asked If this new message of love and equality Instead of lust and gender wars was possible or believable in an Axe campaign, he stated that â€Å"the brand has been slowly evolving for a while now. † (Nude, 2014, Para. ) using war in an advertisement campaign is an ambitious marketing tool that Axe tries to combine gracefully with peace and sexuality. The scene of the ad is based in a war zone on a beach featuring an array of different scenarios. There are soldiers, fighter Jets, helicopters, a soldier with a flame thrower and smoke seeping into the sky in the background. Amidst all the chaos, there are waterfalls, couples in hammocks, people swimming, and airplanes in the sky are formed In the shape off heart. In the middle of the ad there is a women in a brightly colored dress In the arms off soldier.There Is a couple falling from the helicopter together, a couple flirting by a tank, and woman massaging a man on the beach sand. Filters are a profit motive and, In this case, one motive Is using war In the campaign. It is particularly affective because we are currently involved in a war. Promoting peace, by calling the product line Peace, is an active attempt of lifestyle communication. Making the hippie peace movement a cool comeback for the company. Ensuring consumers that Axe is trying to be part of the solution and not the problem.This creates a self-surveillance by which some consumers will purchase the Peace products to feel good about themselves using a product that promotes peace. This is a positive social ideology that many people strive for. Consumer's social position on this issue, war, create a negotiated reading of the product, and they purchase more. The reader Ex.'s senior director, Matthew McCarthy states, â€Å"Young people care deeply about the future. This generation Is socially conscious and more digitally connected than ever. † (Nude, 2014, Para. 0) The ewe Axe advertisement does not fully deviate from Its previous campaigns. The positioning of women in the ad is still very similar to previous ads, however, it's just these soldiers. They are not shown in uniform like the men, but they are in play clothes and are scantily clad in short shorts. There is a women on top of man massaging him and another in the arms of a soldier. To some, this is still a very sexist Axe ad. This is seen as an oppositional reading and in direct conflict with the social ideologies that the Axe executives are trying to portray.The reception of the ad is probably mixed due to split political ideolog ies in the world. Many people would take this campaign face value and feel that it is promoting world peace. Many people might view this as an attempt for Axe to finally end sexism in their ad campaigns. Others will see this as Just another sexist advertisement littered with sexism but Just shown in a different light. Analyzing media using these ideological methods is extremely interesting when you delve into detail and dissect every notion of an ad or an entire campaign.Looking at the ad from different ideological perspectives is eye-opening and interesting. Researching other ads was entertaining and the entire process is engaging. These are all positive aspects of the process. Sometimes difficulties arise when trying to decipher what ideologies are accidentally placed in an ad or what is purely intentional. Axe could have a specific agenda that may or may not be interpreted by certain audiences. This is a con when trying to analyze accurately. Overall, the ideological method of an alyzing media is very useful and thorough.

Negotiable Instrument Act 1881

The Negotiable Instrument Act 1881 Compiled By Neelakshi Jaidka OBJECTIVES After reading this lesson, you should be able to- †¢ Understand meaning, essential characteristics and types of negotiable instruments; †¢ Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; †¢ Explain capacity and liability parties to a negotiable instruments; and †¢ Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments.INTRODUCTION * The Negotiable Instruments Bill was passed by the Council and received assent on December 9, 1881. The Act came into force from March 1, 1882. * Prior to its enactment, the provision of the English Negotiable Instrument were applicable in India, * It extends to the whole of India except the State of Jammu and Kashmir. * The Act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank of India Act, 1934 * Premable â€Å"An Act to define and Law relating to Promissory Notes, Bills of Exchange and cheques† MEANING: – negotiable instrument means an instrument the property in which is acquired by any one who takes it bonafide and for the value notwithstanding any defect in the title of the prior party . DEFINITION [SEC 13] A negotiable instrument means – A promissory note; or – Bill of exchange; or – Cheque – Payable either to order or Bearer. CHARACTERISTICS OF NEGOTIABLE INSTRUMENT {SEC 13} 1 Freely transferable from one person to another person. 2 The holder in due course obtains good title of the instrument notwithstanding any defect in the previous holder. 3 HDC of a negotiable instrument can sue on the instrument in his own name. Transferable infinite times till its maturity. PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENT {sec 118} 1. CONSIDERATION:-Every negotiable instrument was made, accepted, endorsed or drawn for consid eration 2. DATE: – every negotiable instrument bearing a date was made or drawn on that date. 3. Time of acceptance: – every bill of exchange was accepted within a reasonable time after the date mentioned on it but before of its maturity. 4. Time of transfer:- every transfer of negotiable instrument was made before its maturity. 5. STAMP:-lost promissory note, bill of exchange or cheque was duly stamped. 6.HDC: – that the holder of N/I is a HDC . PROMISSORY NOTE {SEC. 4} Definition: – A ‘Promissory note’ is an instrument in writing (Not being a bank- note or a currency note) containing an Unconditional undertaking signed by the maker to pay a Certain sum of money only to a certain person; or the Order of a certain person. Essentials Characteristics of a Promissory Note 1. Writing: – Promissory note must be in writing. Writing includes print and typewriting. Oral promise can not Constitute a valid promissory note. Generally consideratio n, Place and date of making need not be mentioned on the promissory note. . Promise to pay:- (a) A Promissory note must contain an undertaking Promise to pay. (b) Mere acknowledgment of debt is not sufficient.  ©Use of word â€Å"promise’’ is not mandatory, but the maker should bind himself to pay. EX. :- â€Å"I have received a sum of Rs. 5,000 from Sohan. This amount will be repaid on demand’’. 3. Unconditional promise:- (a) The undertaking/ promise to pay should be unconditional and definite. (b)Unconditional event means an event which is certain to happen but the time of its occurrence is uncertain. Examples:- â€Å"I promise to pay B Rs. 00, seven days after may marriage with C’’ cannot constitute a promissory note because a condition as to marriage is attached. A writes – â€Å"I promise to pay C Rs. 25,000, 7days after the death of B’’. This is a valid promissory note and is not conditional, since only the t ime of death of B is uncertain, but is sure to happen. 4. Signed by the maker:-Promissory note should be signed by the maker himself. Where it is written and the name of the maker appears in the instrument, but is not signed, it shall not constitute a valid promissory note. 5. Payee to be a certain person: – Promissory note should specify the payee in clear terms i. . by name, son of, and resident of, etc. The payment can also be identified by description. 6. Certain some of money:- Sum payable must be certain or capable of being made certain. The sum shall be deemed to be certain when the rate of interest is specified. Money may be payable in installments is also a valid promissory note. Examples:- â€Å"I promise to pay Balu, Rs. 10,000, and all other sums which shall be due’’ is not valid since the sum is not certain. 7. Payment of Money only:- There must be a promise to pay only money and not other consideration, e. g. â€Å"I promise to pay B a sum of Rs. 0,000 and deliver him my Scorpio Car’’ is not valid. 8. Duly stamped and dated:- Stamps of requisite amount and description must be affixed on the instrument and duly cancelled either before or at the time of its execution. If the promissory note is not dated, it is presumed to have been made on the date of its delivery. Bill of exchange {Sec. 5} Definition: – A ‘bill of exchange’ is an instrument in Writing containing an unconditional order, singed by the maker, directing a certain person to pay a certain a sum of money only to, a certain person; or the order of a certain person; or the bearer of the instrument.Essentials Characteristics of a Bill of Exchange (a)It must be in writing (b)It must contain n expresses order to pay (c)The order to pay must be definite and unconditional (d) It must be signed by the drawer (e)The sum contained in the order must be certain (f)The order must be to pay money only (g)Drawer, drawee and payee must be certain (usually, same person is the drawer and payee) (h)It must be stamped. Parties to a Bill of Exchange Drawer:- The person who draws the bill (i. e. , the person who makes the bill) is called a drawer. His liability is secondary and conditional.His liability is primary and conditional until the bill is accepted. Drawee:- 1. The person on whom the bill is drawn is called as drawee. 2. On acceptance of the bill- He is called as Acceptor, he becomes liable for the payment of the Bill; his liability is primary and unconditional. Payee: – The person to whom money is to be paid is named in the bill. He is called as payee. Cheque {Sec. 6} Definition:- cheque is a bill of exchange, drawn on a specified banker and not expressed to be payable otherwise than on demand. It includes, the electronic image of a truncated cheque; and a cheque in the electronic form.Essentials characteristics of a cheque:- (a)The definition starts with the â€Å"cheque is a bill of exchange† so it must sa tisfy all the essential features of a valid bill of exchange. (b)It is always drawn on a specified banker. Banker includes any person acting as a banker and any post office saving bank [Sec. 3]. (c)It is always payable on demand and not otherwise. (d) other point * It is drawn on a banker * there are three parties – the drawer, the drawee, and the payee. * It is seldom drawn in sets * It does not require acceptance by the drawee. Days of grace are not allowed to a banker * No stamp duty is payable on checks * It is usually drawn on the printed format Form of cheque: – A cheque may be drawn in 3 forms:- (1. )Bearer cheque: – Expressed to be payable to bearer or the last endorsement is an endorsement in blank. (2. )Crossed cheque: – Cheque that can be collected only through a banker. Promissory Note| Bill of Exchange| * It is promise to pay| * It is anorder to pay| * There are only two parties the drawer, and the payee. | * There are three parties, the draw er, the drawee, and the payee. * There is no necessity of acceptance| * It must be accepted| * The maker is primarily liable| * The drawer is not primarily liable. | * It is never drawn in sets| * Foreign bills are specially drawn in sets. | * Protesting is not necessary after dishonour| * A foreign bill must be protested upon dishonor. | SOME MORE TYPES OF INSTRUMENTS Bearer Instrument [Sec. 13]:- An instrument which is expressed to be payable to bearer or an instrument on which the last endorsement is in blank. Promissory note can not be made payable to bearer.Bill of exchange- can not be made payable to bearer on demand. Order Instrument:- An instrument payable to a specified person or his order. Order instrument can be transferred by endorsement and delivery. Based on location:- Inland Instrument:- A negotiable instrument is an inland instrument if, it is drawn or made in India; It is payable in India or is drawn on a person resident in India. An inland instrument remains inland even if it has been endorsed to a foreign country. Foreign Instrument [Sec. 12]:-A negotiable instrument which is not an inland instrument is called as foreign instrument.Based on payment:- Demand Instrument:- An instrument which is expressed to be payable on demand. An instrument on which time for payment (i. e. maturity date) is not specified. Time Instrument:- An instrument in which time for payment(i. e. maturity date) is specified. A time instrument may be payable- on a specific day; or after a specified period; or certain period after sight; or on happening of an even which is certain to happen. Incomplete / Inchoate Instrument {Sec. 20} Conditions for an inchoate instrument:- (a)A person signs a negotiable instrument. (b)The negotiable instrument is stamped c)The negotiable instrument is either wholly blank or is partially blank. (d)The person signing such negotiable instrument delivers it to another person. Legal effect:- The holder gets a prima facie authority to make or c omplete the negotiable instrument. Liability on an inchoate instrument:- Rights of a person to whom an inchoate instrument is delivered – He can recover only such amount as he was authorized to fill. Rights of holder in due course – He can recover the whole amount stated in the instrument, but not exceeding the amount covered by the stamps. Accommodation Bills {sec. 43}An accommodation bill means a bill which is drawn, accepted without consideration Provision relating to such bills: – ( a) The accommodated party cannot, after he has paid the amount of the bill, recover the amount from any person who become a party to the bill for his accommodation. ( b) The person who become the holder of such a bill in good faith and for consideration, after maturity, may recover the amount from any prior party. Meaning of crossing:- Crossing means a direction given By the drawer of the cheque to the drawee bank, not To pay the cheque at the counter of the bank. The Payment can be collected only though a banker.Types of crossing {Sec. 123 to 131 A} Nature of crossing| Requirements| Effects| Format| General crossing| The cheque must contain two parallel Transverse lines| The cheque must be paid only to a banker| | Special crossing| The cheque must contain the name of a banker. Special crossing may be made only once| Cheque must be paid only to the banker to whom it is crossed. Special crossing can not be converted into general crossing. | | Not negotiable crossing| The cheque must contain the words ‘not negotiable’. The cheque must be crossed generally or specially| The cheque nevertheless remains negotiable.The title of the transferee shall not be better than the title of the transferor. | | A/c payee crossing, i. e. restrictive crossing| The cheque must contain the words ‘A/c payee’ or ‘A/c payee only’. The cheque must be crossed Generally or specially| The cheque does not remain negotiable anymore. Based on transfe r procedure| | Maturity of a Negotiable Instrument {Sec. 22} Meaning:- It means the date on which the negotiable instrument falls due for payment. Days of grace:- A negotiable instrument which is payable otherwise than on demand is entitled to 3 days of grace. Calculation of days of maturity {Sec. 3 to 25} CASE| DATE OF MATURITY| Negotiable instrument payable on a specified day. | Specified day + 3rd day| Negotiable instrument payable on a stated number of days after date| Date on which negotiable instrument is Drawn + stated number of days + 3rd day| Negotiable instrument payable on a stated number of days after sight| Date on which negotiable instrument is presented for sight + stated number of days + 3rd day| Negotiable instrument payable on a stated number of days after happening of a certain event| Date on which such event happens + stated number of days + 3rd day. Negotiable instrument payable on stated number of month after date. | Corresponding day of the relevant month (i. e. , date on which negotiable instrument is drawn + stated number of month) + 3rd day| Negotiable instrument payable on stated number of month after sight| Corresponding day of the relevant month (i. e. , Date on which negotiable instrument is presented for sight + stated number of months) + 3rd day. | Negotiable Instrument payable on stated number of months after happening of a certain event| Corresponding day of the relevant month (i. . , Date on which such event happens + stated number of months) + 3rd day| If the day of maturity of negotiable instrument is a public holiday| Immediately preceding business day| If the day of maturity of negotiable instrument is an emergency or unforeseen public holiday| Immediately succeeding business day| Note: – If in the relevant month, there is no corresponding day, the last day of such month shall be taken. HOLDER {Sec. 8}A holder of a negotiable instrument is a person entitled in his own name to the possession there of and to receive or recover the amount due an negotiable instrument from the parties liable on negotiable instrument. HOLDER IN DUE COURSE {Sec. 9} A ‘holder in due course’ is a person who- *must be a holder. *must have become the holder for consideration. *must have obtained the possession of negotiable instrument before maturity. *must have obtained the negotiable instrument in good faith. PRIVILEGES OF A HOLDER IN DUE COURSE * Every prior party to a negotiable instrument is liable to a HDC. A holder who derives title from HDC has the same right as that of a HDC. * No prior party can set up a defence that the negotiable instrument was drawn, made or endorsed by him without any consideration. * No prior party can set up a defence that the negotiable instrument was lost or was obtained from him by offence or fraud or for an unlawful consideration. Thus, HDC gets a valid title to the negotiable instrument even though the title of the transferor was defective. * No prior party can allege that negotiable instrument was delivered conditionally or for a special purpose only. HDC can claim full amount of the negotiable instrument (but not exceeding the amount covered by the stamp) even though such amount is in excess of the amount authorized by the person delivering an inchoate negotiable instrument. Difference between holder and HDC BASIS | HOLDER| HDC| Consideration| A person becomes a holder even if he obtains the negotiable instrument without any consideration. | A person becomes HDC only if he obtains the negotiable instrument for consideration. | Before maturity| A person becomes a holder even if he obtains the negotiable instrument after the maturity of the negotiable instrument. A person becomes HDC only if he obtains the negotiable instrument before its maturity. | Good Faith| A person becomes the holder, even if he does not obtain the negotiable instrument in good faith. | HDC, a person who obtain the negotiable instrument on good faith. | Privileges| A holder is not entitled to the privileges, which are available for HDC. | A HDC is entitled to various privileges as specified under the negotiable instrument act, 1881. | Right to use | A holder can not sue all the prior parties. | A HDC can sue all the prior parties. | Negotiation {sec 14}Meaning: – Negotiation means transfer of a negotiable instrument to any other person so as to constitute that person the holder of such negotiable instrument. Methods of negotiation: – *Negotiation by delivery – 1. A bearer instrument may be negotiated by delivery. 2. The delivery must be voluntary *Negotiation by endorsement and delivery An order instrument can be negotiated only by way of 1. Endorsement; and 2. Delivery. Endorsement {sec 15} When the maker or holder of a negotiable instrument signs the same *otherwise than as such maker *for the purpose of negotiation on the back or face thereof or on a slip of paper annexed thereto, *or so sign for the same purpose a stamped pape r intended to be completed as a negotiable instrument *he is said to endorse the same, and is called the ‘Endorse’. The person in whose favour the endorsement made is called ‘Endorsee’. EFFECT OF ENDORSEMENT The endorsement of an instrument, followed by delivery, transfers to the endorsee the property in the instrument with right of further negotiation. TYPES OF ENDORSEMENT 1. Endorsement in blank *Endorsement in blank means an endorsement made by the endorser without writing the name of the endorsement. The instrument is payable to bearer even though originally payable to order. 2. Endorsement in full Special endorsement means an endorsement made by a holder by- (a)Signing his name; and (b)Added a direction to pay the amount to a specified person. 3. Restrictive endorsement *An endorsement which restricts the right of further negotiation is called as restrictive endorsement. 4. Partial endorsement *An endorsement which purports to transfer only a part of t he amount of the instrument is called as partial endorsement. Partial endorsement is not valid at law. . Conditional endorsement An endorser may, by express words in the endorsement- (a)Make his liability, or (b)Make the right of endorsee to receive the amount Depend upon the happening of a certain event, although such event may never happen. ACCEPTANCE {Sec. 7 and 86} Meaning of acceptance (sec. 7)| (a) The drawee signs the bill; and (b) The drawee delivers it to the holder of the bill; or the drawee gives notice of acceptance to the holder of the bill. | Effect (sec. 7)| The drawee becomes the acceptor. | Essential of a valid acceptance (sec. )| (a) Written (whether on the face or back of the bill) (b) Signed (signature without the word ‘accepted’ is also valid) (c) Signing on the bill (d) Delivery or intimation to the holder that the has been accepted. | Types of acceptance (sec. 86)| (a) General- Acceptance of bill without any qualification. (b) Qualified- Acceptanc e of bill subject to some qualification (e. g. , accepting the bill subject to the condition that the payment of bill shall be made only on happening of an event specified there in. | Effect of qualified acceptance (sec. 6)| (a) The holder may object to the qualified acceptance. In such a case, it shall be treated that the bill is dishonoured due to non- acceptance. (b) He may give his consent to the qualified acceptance. In such a case, all the previous parties, not consenting to it, are discharged. | PAYMENT IN DUE COURSE 1. Payment is made as per apparent tenor 2. Payment is made in good faith 3. Payment is made without negligence 4. Payment is made in money only. MATERIAL ALTERATION Meaning:- An alteration is called as material alteration if it alters- *the character or operation (i. e. he legal effect) of a negotiable instrument, or *the rights and liabilities of the parties to a negotiable instrument. What is material alteration? | What is NOT Material Alteration? | Alteration regarding-(a)Date,(b)Time of payment,(c)Place of payment,(d)Sum payable(e)Opening a crossed cheque,(f)Relationship between parties,(g)Converting an order cheque into a bearer cheque. | (a)Filling blank of the instrument,(b)Conversion of blank endorsement into endorsement in full,(c)Crossing of Cheque,(d)Conversion a General Crossing into Special Crossing, like addition of word â€Å"A/c payee† or â€Å"Not Negotiable†. e)Cancelling the word bearer and making cheque payable to order. (f)Alternation made with the consent of the parties. | Effect of a material alteration {sec. 87} *Any material alteration of a negotiable instrument renders the same void as against any One who is a party there at the time of making such alteration and does not consent thereto. *But, a material alteration is valid, if it was made so as to carry out common intention of the original parties. Negotiation Back {Sec. 90} MeaningWhen an endorser, after he has negotiated an instrument, again beco mes a holder before its maturity, the instrument is said to be negotiated back to that holder. Effect:- 1. In a negotiation back, none of the intermediate holder / endorsers is liable to the holder. 2. The general rule, that a holder in due course may sue all prior parties to the instrument does not apply. 3. However, where a prior party has excluded its liability on the instrument and the negotiable instrument is negotiated back to him, he may sue all intermediate endorsers. DISCHARGE OF A NEGOTIABLE INSTRUMENT Payment in due course:- A negotiable instrument is discharged if the party primarily liable on the negotiable instrument makes the payment in due course. *When the payment is made, the negotiable instrument must be cancelled or the fact of payment must be recorded negotiable instrument. Cancellation:- Where the holder cancels the name of the party primarily liable on the negotiable instrument, with intent to discharge him, the negotiable instrument is discharged. Release:- W here the holder releases or renounces his right against the party primarily liable on the negotiable instrument, the negotiable instrument is discharge.Negotiation back:- Where a party primarily liable on a negotiable instrument becomes the holders of the negotiable instrument, the negotiable is discharged. DISCHAGE OF A PARTY {Sec. 82 to 90} Payment:- Payment by a party who is secondarily liable on a negotiable instrument discharges the holder and all parties subsequent to the party making payment of the negotiable instrument. Cancellation:- Where the holder cancels the name of any party liable on the negotiable instrument (other than the party primarily liable on the negotiable instrument), such a party and all parties subsequent to him are discharged.Release:- Where the holder releases any party liable negotiable instrument (other than the party primarily liable on the negotiable instrument), such a party and all parties subsequent to him are discharged. Allowing drawee more than 48 hours to accept:- All prior parties not consenting to the same are discharged from liability to such holder. Qualified acceptance:- Where a holder of the bill consents to qualified acceptance, all the prior parties who did not consent to qualified acceptance are discharge. Material alteration:- Every party not consenting to a material alteration negotiable instrument is discharged.Negotiation back:- Where a party already liable on the negotiable instrument becomes the holder of negotiable instrument, such a party and all intermediate parties to whom such a party was previously liable shall be discharge. Operation of law:- *A party is discharged if the negotiable instrument becomes time barred. *A party is discharged if he is declared as an insolvent by the court. Dishonour by Non- Acceptance {sec. 91} A bill is dishonoured by non- acceptance if it is duty presented for acceptance, but the drawee refuses to accept the bill.Cases in which bill are dishonoured by non- acceptance:- (a) When the drawee makes default in acceptance upon being duly required to accept the bill. (b) In case there is two or more drawee who are not partners, if the bills is not accepted by all the drawee. (c) Where the drawee is a fictitious person. (d) When the drawee can not be found even after a reasonable search. (e) When the drawee is incompetent to contract. (f) Where the drawee gives a conditional acceptance and the holder does not give his consent to the conditional acceptance.Effect:- *The holder gets an immediate right to sue all the prior parties. *He need not wait till the maturity of the bill for it to be dishonoured on presentment for payment. Dishonour by Non- Payment {sec. 92} A negotiable instrument is dishonoured by non- payment, when presentment for payment is excused and the instrument remain unpaid after maturity- In case of| Default in payment made by| Promissory note| Maker of the note| Bill of Exchange| Acceptor of the bill. | Cheque| Drawee of the Cheque. |