Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Negotiable Instruments Act, 1881

A bill of exchange is drawn payable at a place other than the drawee's residence and is dishonoured by non-acceptance. Unless paid before or at maturity, what does the Act permit?

Such a bill, dishonoured by non-acceptance, may be protested for non-payment at the place specified for payment without further presentment to the drawee, unless it is paid before or at maturity. A second presentment to the drawee is therefore unnecessary.

  1. AIt may be protested for non-payment at the place specified for payment without further presentment to the draweeCorrect
  2. BIt must be presented again to the drawee at his residence before any protest
  3. CIt becomes void immediately
  4. DIt can be protested only at the drawer's residence

Explanation

For bills payable at a place other than the drawee's residence and dishonoured by non-acceptance, the Act allows protest for non-payment in the place specified for payment, without further presentment to the drawee, unless paid before or at maturity. Re-presentment is not required.

Did you get it right without looking?

One question tells you little. A timed set on Negotiable Instruments Act, 1881 shows your real accuracy, how long you take and where you lose marks.

Practise Negotiable Instruments Act, 1881Free diagnostic mock

More Negotiable Instruments Act, 1881 questions