Question

Which of the following phrases could be written on the fact of a check without impairing a check's negotiability?

		"in full satisfaction"
		"for value received"
		"in payment of services rendered"
		All of the above

Answer 1

All these phrases can be written on the fact of a check as all these are the basic belongings as per negotiable instrument act. it can be discussed as :-

1) in full satisfaction - it means whatever the dues are pending on the payee, the amount stated in check is full & final payment for all outstanding dues.

2) for value received - it means amount is issued in consideration to something received which has some value.

3) in payment of services rendered - it means amount is received in regards to render of services.