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

Under the Act, in determining a reasonable time for presentment for acceptance or payment, which factor is treated as follows?

Reasonable time is decided by looking at the nature of the instrument and the usual course of dealing with similar instruments, and public holidays are excluded when calculating that time. The Act sets no single fixed number of days for every instrument.

  1. ARegard is had to the nature of the instrument and the usual course of dealing with similar instruments, and public holidays are excludedCorrect
  2. BOnly calendar days including public holidays are counted
  3. CA fixed period of seven days applies to all instruments
  4. DThe drawee alone decides what is reasonable

Explanation

The Act directs regard to the nature of the instrument and the usual course of dealing for similar instruments. In calculating the time, public holidays are excluded. No fixed period applies and the drawee does not decide.

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