Negotiable Instruments Act - Study Mode

Show All Answers

[#271] What is the term used to describe an instrument, which is not discharged even by non-presentation of the instrument to the acceptor for payment?

(A) Cheque

(B) Bill of exchange

(C) Accommodation

(D) Bill in sets

Correct Answer

(B) Bill of exchange

[#272] 'Indorser' is defined in which section of the Negotiable Instruments Act, 1881?

(A) Section 13

(B) Section 14

(C) Section 15

(D) Section 16

Correct Answer

(C) Section 15

[#273] Who as the drawer of a cheque can be prosecuted for non-payment of the cheque due to insufficient funds under section 138 of the Negotiable Instruments Act, 1881:

(A) Only a human being

(B) Only a body corporate

(C) Only a firm

(D) All of these

Correct Answer

(D) All of these

[#274] Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below. Assertion (A): A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer. Reason (R): Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

(B) (A) is false, but (R) is true

(C) Both (A) and (R) are false

(D) (A) is true, but (R) is false

Correct Answer

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

[#275] Under Negotiable Instruments Act, 1881, an instrument in writing containing an unconditional under taking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument is a . . . . . . . .

(A) Promissory Note

(B) Bill of Exchange

(C) Currency Note

(D) Truncated Cheque

Correct Answer

(A) Promissory Note