15 Questions
In the Negotiable Instrument Act, which section defines the meaning of a Negotiable Instrument?
Section-13
According to the NI Act, under which section are public holidays declared?
Section-25
Which section of the NI Act provides protection to Paying Banker against forged endorsement in Order Cheques?
Section-85(1)
Under which section of the NI Act are inchoate instruments defined?
Section-20
According to the NI Act, what is the section that describes the capacity of a minor to draw or endorse negotiable instruments?
Section-26
Which section of the NI Act defines the obligation of a paying banker to make payment of genuine instruments?
Section-31
What section of the NI Act deals with the protection of Paying Banker against forged endorsement in case of Demand Drafts?
Section 85
Under which section of the NI Act is the protection to Paying Banker against material alteration in a cheque available?
Section 89
Which section of the NI Act provides protection to the Collecting Banker?
Section 131
In case of dishonor of a cheque due to insufficiency of funds, the relevant section under the NI Act is:
Section 138
What is the term for the person to whom the amount mentioned in a promissory note is payable?
Payee
What is the term for a Promissory Note or Bill of Exchange payable after a certain period of time?
Usance Bill of Exchange
How many parties are involved in a Promissory Note and a Bill of Exchange respectively?
Promissory Note has 2 parties, Bill of Exchange has 3 parties
What is a Bill of Exchange payable on some future date called?
Time Bill
In case of a foreign bill sent in multiple copies, what are the other copies called after receipt of the accepted copy?
VIA
Study Notes
Negotiable Instrument Act
- Section 13 of the NI Act defines the meaning of a Negotiable Instrument.
- Public holidays are declared under Section 25 of the NI Act.
- Section 85 of the NI Act provides protection to Paying Banker against forged endorsement in Order Cheques.
- Inchoate instruments are defined under Section 20 of the NI Act.
- The capacity of a minor to draw or endorse negotiable instruments is described under Section 26 of the NI Act.
- The obligation of a paying banker to make payment of genuine instruments is defined under Section 31 of the NI Act.
- Section 87 of the NI Act deals with the protection of Paying Banker against forged endorsement in case of Demand Drafts.
- The protection to Paying Banker against material alteration in a cheque is available under Section 87A of the NI Act.
- Section 128 of the NI Act provides protection to the Collecting Banker.
- In case of dishonor of a cheque due to insufficiency of funds, the relevant section under the NI Act is Section 138.
Promissory Note and Bill of Exchange
- The person to whom the amount mentioned in a promissory note is payable is called the payee.
- A Promissory Note or Bill of Exchange payable after a certain period of time is called a usance bill.
- A Promissory Note involves two parties, while a Bill of Exchange involves three parties.
- A Bill of Exchange payable on some future date is called a usance bill.
- In case of a foreign bill sent in multiple copies, the other copies are called "duplicate copies" after receipt of the accepted copy.
Test your knowledge of the sections of the Negotiable Instrument Act with this quiz. Answer questions about the definitions and provisions of different sections of the act.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
