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Chapter- 12 The negotiable instrument Act, 1881
THE NEGOTIABLE INSTRUMENTS ACT, 1881
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Person named in the instrument to whom money is directed to be paid—
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Drawer
Acceptor
Maker
Payee
Maker of a bill of exchange is called as—
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Drawer
Drawee
Acceptor
Payee
Days of grace provided to the Instruments at maturity is—
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1 day
2 days
3 days
5 days
Parties to a negotiable instrument can be discharged from liability by—
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Cancellation
Payment
Release
All of the above
Validity period for the presentment of cheque in bank is—
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3 months
6 months
1 year
2 years
Offences committed under the Negotiable Instruments Act can be—
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Compoundable
Non compoundable
Non compoundable and non-bailable
Bailable
A bill of exchange is payable 180 days after sight. As per the provisions of the Negotiable Instruments Act, 1881, how many days of grace shall be provided in such a case:
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1 day
2 days
3 days
5 days
As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the__
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said public holiday
5 days succeeding public holiday
next succeeding business day
next preceding business day
A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:
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M is liable to X
X can proceed against A
No one is liable in this case
M can proceed against A
[Nov 2007 (1)] - A signs the instrument in the following manner. State the instruments which cannot be considered as promissory note:
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I promise to pay B or order Rs. 500
I acknowledge myself to be indebted to B Rs. 1,000 to be paid on demand, for value received
I promise to pay B Rs.10,000 after three months
I promise to pay B Rs. 500 seven days after my marriage with C.
[May 2010 (1)] -P obtains a cheque drawn by M by way of gift. Here P is a:
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Holder in due course
Holder of value
Holder
None of the above
[May 2009 (1)] - In legal terms, person who takes the instrument bonafide for value before it is over due, in good faith is known as
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Holder in due course
Holder
Holder for value
None of the above.
[Nov 2008 (1)] - A negotiable instrument which is payable to order can be transferred by
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Simple delivery
Endorsement and delivery
Endorsement
Registered post
[Nov 2009 (1)] - A negotiable instrument drawn in favour of a minor is
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Void
Void but not enforceable
Valid
None of the above
[May 2008 (1)] - A promissory note drawn jointly by X, a minor and Y, a major is
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Void
Valid but not negotiable
Valid but can be enforced only against Y
None of the above
Which one of the following is not the characteristic of a negotiable instrument?
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It must be in writing.
It must be freely transferable.
It must be registered.
It must contain definite amount of money.
A holder is a person who is entitle to the instrument in his own name, and the term includes:
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Payee instrument
Bearer of instrument
Endorsee of instrument
All of the above
In case, a finder or a thief of a bearer negotiable instrument transfers it to a person who receives the same in good faith and for valuable consideration, then such a transferee is:
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Entitled to receive the payment
Not entitled to receive the payment
Punishable for helping a thief
Conditional owner of the instrument
A slip of paper attached to the back of instrument for signing indorsements is known as:
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Allonge
Escrow
Zickri chit
Peth
An indorsement made by an indorser by signing his name and also by writing the name of the indorsee, is known as:
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General indorsement (Blank Endorsement)
Special indorsement (Endorsement in Full)
Restrictive indorsement
None of the above
A negotiable instrument should be presented for payment to the party who is:
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Primarily liable
Secondarily liable
Willing to make payment
Any person who can make payment
Material alteration of a negotiable instrument, without the consent of the parties, discharge the parties who have become liable:
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After such alteration
Prior to such alteration
Because of alteration
Without such alteration
The negotiable instruments payable on demand are due for payment:
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From 3rd day of date of issue
From the date of issue
After 15 days of date of issue
After 30 days of date of issue
Which of the following negotiable instrument is not entitled to days of grace?
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A bill of exchange payable on specified date
A promissory note payable on specified date
A promissory note payable 'after sight'
A cheque
A negotiable instrument made without any consideration at all, is:
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Void between all parties
Voidable between all parties
Void between immediate parties
Voidable between immediate parties
Which of the following statement(s) is/are incorrect with reference to Negotiable Instruments Act, 1881?
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An agent signing without disclosing the name of his principal is personally liable.
The donee of negotiable instrument is a holder in due course.
Both of the above
None of the above
Which of the following statement(s) is/are incorrect with reference to Negotiable Instruments Act, 1881?
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Crossing a cheque amounts to a material alteration which requires authentication.
A postdated cheque is not negotiable.
Both of the above
None of the above
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