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CSEET · Business Laws and Management · Elements of Law relating to Negotiable Instruments

Match the following. List I: (A) Short title and extent clause, (B) Section 13, (C) Section 53, (D) Section 130. List II: (1) Holder deriving title from a holder in due course, (2) Cheque bearing 'not negotiable', (3) Definition of negotiable instrument, (4) Saving of usages relating to hundis.

The correct matching is A-4, B-3, C-1, D-2. The short title and extent section saves local usages relating to hundis, Section 13 defines a negotiable instrument, Section 53 gives rights of a holder in due course to one deriving title from him, and Section 130 covers 'not negotiable' cheques.

  1. AA-4, B-3, C-1, D-2Correct
  2. BA-3, B-4, C-1, D-2
  3. CA-4, B-3, C-2, D-1
  4. DA-1, B-3, C-4, D-2

Explanation

The short title section also saves usages relating to hundis (4). Section 13 defines a negotiable instrument (3). Section 53 gives a holder deriving title from a holder in due course that holder's rights (1). Section 130 deals with a crossed cheque marked 'not negotiable' (2).

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