CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments
Under the Negotiable Instruments Act, 1881, which of the following is a negotiable instrument when payable either to order or to bearer?
A promissory note is a negotiable instrument under the Act when payable to order or to bearer. The definition covers only promissory notes, bills of exchange and cheques, so share warrants, railway receipts and bills of lading are outside it.
- AA promissory noteCorrect
- BA share warrant issued by a company
- CA railway receipt
- DA bill of lading
Explanation
Section 13 defines a negotiable instrument as a promissory note, bill of exchange or cheque payable to order or to bearer. The other three items are not named in that definition, so they are not negotiable instruments under the Act.
Did you get it right without looking?
One question tells you little. A timed set on Law relating to Negotiable Instruments shows your real accuracy, how long you take and where you lose marks.
More Law relating to Negotiable Instruments questions
- A dispute arises over a cheque drawn in a foreign country, and neither party proves what that country's law on cheques provides. How will th…
- A cheque is originally drawn payable to bearer. It reaches Meena, who endorses it "Pay Kiran only" and delivers it to Kiran. The bank pays t…
- Meera signs and delivers to Karan a stamped paper carrying an incomplete negotiable instrument; the stamp covers ₹5,00,000. She intended it …
- Anita obtained a bearer cheque from its maker, Deepak, by fraud. She transferred it to Farid for value. Farid sues Deepak and Deepak shows t…
- Kiran signs and delivers to Lata a properly stamped paper, otherwise blank, with the stamp covering Rs. 50,000. Lata fills it in as a note f…
- A bill of exchange must be protested for dishonour within a specified time. The holder has the bill noted for protest by a notary before tha…