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

Statement I: The Negotiable Instruments Act, 1881 extends to the whole of India. Statement II: The Act affects any local usage relating to any instrument in an oriental language. Which is correct?

Only Statement I is correct. The Act extends to the whole of India, but it states that nothing in it affects any local usage relating to an instrument in an oriental language, such as a hundi. Statement II says the opposite, so it is incorrect.

  1. AOnly Statement I is correctCorrect
  2. BOnly Statement II is correct
  3. CBoth statements are correct
  4. DNeither statement is correct

Explanation

The Act extends to the whole of India, so Statement I is correct. It expressly provides that nothing in it affects local usage relating to any instrument in an oriental language, so Statement II, which says it does affect such usage, is wrong.

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