Negotiable Instruments Act MCQ question and answer

11

The effect of a notice under clause (b) of section 138 of Negotiable Instruments Act is -

A) The payee forfeits the right to again present the cheque for payment B) The payee can present the cheque for payment C) The payee can present the cheque with the permission of the court D) None of the above

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Answer & Solution

Answer: Option A

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12

Can a 'notice in writing' envisaged in section 138(b) of the Negotiable Instruments Act, 1881, be sent by telegraph?

A) No [V. Raju v. P. Subbarama Naidu, AIR 1931 Mad 301] B) Yes [M. V. Muthuramlingam v. D. Narayanswamy, (1995) 3 Comp Cas 77 Mad] C) Yes [A. B. Steels v. Krishna Finance, (1996) 86 Comp Cas 295 (Mad)] D) None of the above

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Answer & Solution

Answer: Option B

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13

A promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity

A) On the 30^th day after the day on which it is expressed to be payable B) On the 3^rd day after the day on which it is expressed to be payable C) On the 5^th day after the day on which it is expressed to be payable D) On the 4^th day after the day on which it is expressed to be payable

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Answer & Solution

Answer: Option B

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14

Who is 'holder in due course'?

A) A person who holds negotiable instrument in the name of his spouse B) A person who holds negotiable instrument in his name C) A person who becomes possessor of negotiable instrument without consideration D) A person who becomes possessor of negotiable instrument payable to bearer for consideration

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Answer & Solution

Answer: Option D

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15

In determining reasonable time for the purpose of a negotiable instrument

A) Public holidays are excluded B) Public holidays are included C) Only the holidays observed by banks are excluded D) None of the above

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Answer & Solution

Answer: Option A

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16

In which section of Negotiable Instruments Act "holder in Due Course" is defined?

A) Section 07 B) Section 10 C) Section 09 D) Section 13

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Answer & Solution

Answer: Option C

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17

The Negotiable Instruments Act, 1881 applies to

A) The whole of India including State of Jammu and Kashmir B) The whole of India except the State of Jammu and Kashmir C) Those states as notified by the Union Government from time to time in the Official Gazette D) The whole of India except the State of Jammu and Kashmir and the North-Eastern States

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Answer & Solution

Answer: Option A

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18

Which of the following is not a negotiable instrument?

A) Cheque B) Pronote C) Hundies D) None of these

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Answer & Solution

Answer: Option C

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19

The presumptions under Section 118 of the Act do not include -

A) Presumption that holder of a cheque received the cheque for discharge of any debt or other liability B) Presumption as to time of acceptance C) Presumption as to date D) Presumption as to order of endorsement

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Answer & Solution

Answer: Option B

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20

Which of the following sections enables the court to cancel the bond and ball bond:

A) 466-a B) 446 C) 448 D) 450

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Answer & Solution

Answer: Option A

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Negotiable Instruments Act MCQ question and answer | Law MCQ question