Negotiable Instrument Act - Part: IIIrd

41. In the casee of a promissory note which is not negotiable:

a. Notice of dishonour is compulsory

b. No notice of dishonour is necessary.

c. Negotiable Instruments Act is silent on this aspect.

d. Indorsement is necessary.

42. Which of the following is true about 'Inchoate Instrument'?

a. It is an ambigous instrument.

b. It is an incomplete or blank negotiable instrument.

c. It is not a negotiable instrument.

d. It is a documentary bill

43. At sight under Section 21 of the NI Act, 1881 means

a. On presentation.

b. On demand

c. On coming into vision

d. None of the above.

44. The undertaking contained in a promissory note, to pay a certain sum of money is:

a. Conditional 

b. Unconditional 

c. May be conditional or unconditional depending upon the circumstances.

d. All of the above

45. Who are the partners in a bill of exchange?

a. Drawer and Drawee

b. Payee

c. Both a and b.

d. None of the above

46. What is the term used to describe an instrument, which is not discharged even by non-representation of the instrument to the acceptor for payment?

a. Cheque 

b. Bill of exchange.

c. Accomodation

d. Bill in sets.

47. Section 16 of NI Act defines

a. Restrictive endorsement

b. Conditional endorsement

c. Indorsement "in full" and Indorsement "in blank".

d. All of the above.

48. Crossing of cheque affects the 

a. Negotiability of the cheque

b. Mode of payment on the cheque

c. Both (a) and (b)

d. None of the above

49. Which provision of the act deals with 'payment in due course'?

a. Section 9

b. Section 10

c. Section 36

d. Section 78

50. Following is not the essential conditions for applicability of Section 8 of the Act -

a. The defendant must be the owner of the property.

b. The article must be movable property

c. The plaintiff must be entitled to immediate possession of the article

d. The article must be possession or control of the defendant.

51. Which of the following negotiable instruments requres acceptance by the drawee before payment can be demanded?

a. Promissory note.

b. Bill of exchange

c. Cheque

d. Both b and c

52. what is the term used to describe an endorsement in which the endorser excludes his own liability on the negotiable instrument in case of dishonour of the instrument?

a. Partial endorsement 

b. Sans recourse endorsement

c. Restrictive endorsement

d. Conditional endorsement.

53. Which of the following is not correct with regard to representment for acceptance?

a. Only holder of the bill or his agent can present the bill.

b. Drawer himself can present the bill

c. If the bill has been negotiated before acceptance, endorsee can present the bill.

d. The bill cannot be presented to legal presentations in case of death of drawee.

54. 'Negotiation by endorsement' has been explained under the Negotiable instruments Act, 1881 in

a. Section 28

b. Section 38

c. Section 48

d. Section 58

55. Under Section 97 of NI Act when the party to whom notice of dishonour is dispathced the notice is ignorant of his death, then

a. The Notice is insufficient.

b. The Notice is sufficient.

c. Notice shall be given to legal representative

d. None of these.

56. The term 'Legal Respresentative' in Section 29 of the NI Act, 1881

a. Does not include executors or administrator.

b. Includes executors or administrators

c. Includes executors but does not include administrator

d. Includes only administrator but does not include executors.

57. Under Section 23 of NI Act, a promissory note or bill of exchange, dated 31st August, 2018 is made payable three months after date. The instrument is at maturity of the .....

a. 30 November, 2018

b. 31 November, 2018

c. 1 December, 2018

d. 3 December, 2018

58. which provision of the Act deals wit the effect of declaration --

a. Section 33

b. Section 35

c. Section 36

d. Section 32

59. The NI Act makes specific mention of three instruments, namely cheque, Bill of exchange and 

a. Promissory Note

b. Hundi

c. Bank Draft

d. All of the above.

60. When presentment for payment is to be made under section 65 of the Act?

a. Presentment for payment can be made at any reasonable time.

b. Presentment for payment must be made during the usual hours of business and, if at a bank within banking hours.

c. There is no such stipulation on time for presentment.

d. None of the above.

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