Skip to content

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

Match the presumption under Section 118 with its meaning. (P) Consideration; (Q) Date; (R) Order of indorsements; (S) Holder in due course. (1) Indorsements were made in the order they appear; (2) Instrument was made for consideration; (3) Holder is a holder in due course; (4) Instrument was made on the date it bears.

The correct matching is consideration with the instrument being made for consideration, date with being made on the stated date, order of indorsements with sequence as they appear, and holder with being a holder in due course.

  1. AP-2, Q-4, R-1, S-3Correct
  2. BP-4, Q-2, R-1, S-3
  3. CP-2, Q-4, R-3, S-1
  4. DP-1, Q-4, R-2, S-3

Explanation

Section 118 presumes consideration (2), that a dated instrument was made on its date (4), that indorsements were made in the order they appear (1), and that the holder is a holder in due course (3). The other options swap these pairs.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Law relating to Negotiable Instruments shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Law relating to Negotiable InstrumentsFree diagnostic mock

More Elements of Law relating to Negotiable Instruments questions