Essentials of a cheque
A cheque the following essential elements or characteristics :
v It must be in writing: A cheque must be in writing. An oral order to pay does not constitude a cheque.
v It should be drawn on banker: The instrument must be drawn on a specified banker. This means, firstly, that it should be drawn on a banker and not on any other person. Secondly, the name of the banker should be specified. A cheque can be drawn on a bank where the drawn on a bank where the drawer has an account.
v It contains an unconditional order to pay: A cheque cannot be drawn so as to be payable conditionally. The draws orders to be drawee bank must be unconditional and should not make the cheque payable dependent on a contingency. A conditional cheque shall be invalid.
v It is payable on demand: A cheque is always payable on demand.
v Banker is liable only to the drawer: The banker on whom the cheque is drawn shall be liable only to the drawer. A holder or bearer has on remedy against the banker if a cheque is dishonored.