Sunday, December 20, 2009

Objective Questions: Negotiable Instruments Act,1881

1. Who are the parties in a bill of exchange?
    A:    Drawer, Drawee, Payee[Sec.7]
2. ________is an instrument in writing containing an unconditional undertaking signed by the maker to pay a certain sum of money only to, or to the order of a certain person, or to the bearer.
    A:    Promissory Note[Sec.4]
3. ________is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer.
    A:    Bill of Exchange[Sec.5]
4.________is a person entitled in his own name to the possession of a promissory note, bill of exchange or cheque and to receive or recover the amount due thereon from the parties.
    A:    Holder[Sec.8]
5. _______is generally a person who for consideration became possessor of a promissory note, bill of exchange or cheque.
    A:    Holder in due course[Sec.9]
6. Negotiable Instrument is defined in _________.
    A:    Sec.13
7. What is the process by which a negotiable instrument is transferred to any person so as to constitute such person the holder called?
    A:    Negotiation[Sec.14]
8. Liability of drawer to compensate the holder in case of dishonour is primarily provided under_______.
    A:    Sec 30
9. A negotiable instrument made, drawn, accepted, endorsed or transferred without consideration, or for a consideration which fails, creates _________ of payment between the parties to the transaction.
    A:    No obligation[Sec.43]
10. __________is one mode by which the maker of a negotiable instrument discharges himself from liability.
    A:    Cancellation.;Release and Payment are other modes[Sec. 82]
11. Material alteration on a negotiable instrument renders it void.___________is an exception.
    A: Common intention[Sec.87]
12. Penalties, Cognizance, Jurisdiction etc are discussed in __________ of the Act.
    A:    Chapter 17
13. Issuance of notice by the holder in case of dishonour is primarily provided in _________.
    A:    Sec.93
14. Sec.118 of the Act deals with_______.
    A:    Presumptions
15. A cheque is crossed_________when it bears across its face an addition of the name of a banker, either with or without the words "not negotiable".
    A:    Specially[Sec.124]
16. Condonation of delay in making complaint is provided under________.
    A:     Proviso to Sec.142
17. Compounding of offences is provided under________.
    A:    Sec.147
18. When the amount is stated differently in words and figures, the amount stated in _________is to be taken.
    A:    words[Sec.18]
19. Unless contrary is proved, holder of negotiable instrument _________presumed to have received the cheque referred under Sec.138 for discharge of any debt or liability.
    A:     Shall be[Sec.139]
20. Signing a document written, read and understood is called________.
    A:    execution.

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