Under Section 23 of Negotiable Instruments 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 . . . . . . . . ?

Under Section 23 of Negotiable Instruments Act, a promissory note or bill of exchange, dated 31<sup>st</sup> August, 2018 is made payable three months after date. The instrument is at maturity of the . . . . . . . . ?

Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note?
1. Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act
2. Containing an unconditional undertaking
3. To pay a certain sum of money only to a specific person or the bearer
4. The seller is bound to accept the promissory note
5. A document was written and signed by the payer/maker

A

2, 3 and 5

B

2, 3 and 4

C

1, 2, 3 and 4

D

All of the above

Which of the following is/are true about Bill of Exchange?
1. A bill of exchange requires in its inception two parties.
2. A bill of exchange or 'draft' is a written order by the drawer to the drawee to pay money to the payee.
3. Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date.
4. Definition of 'Bill of Exchange' is mentioned in Section 6 of the Negotiable Instrument Act.

A

1 and 4

B

1, 2 and 4

C

2 and 3

D

3 and 4

Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the given below.
Assertion (A): A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Reason (R): Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.

A

Both (A) and (R) are correct and (R) is the correct explanation of (A)

B

(A) is false, but (R) is true

C

Both (A) and (R) are false

D

(A) is true, but (R) is false

Under section 11 of the Negotiable Instruments Act, a promissory note, bill of exchange or cheque drawn or made in India, and made payable in, or drawn upon any person resident in India is . . . . . . . .

A

Inland instrument

B

Foreign instrument

C

Negotiable instrument

D

Indorsement

As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed tobe due on the . . . . . . . . .

A

Said public holiday

B

5 days succeeding public holiday

C

Next succeeding business day

D

Next preceding business day

As per Section 118 of the Negotiable Instruments Act, presumption in regard to the date of a negotiable instrument is that every negotiable instrument bearing a date was made or drawn:

A

On such date

B

Prior to that date

C

May be on or prior to such date

D

None of the above

According to Section 4 of Negotiable Instrument Act, this is an instrument in writing (note being a bank-note or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments. Which instrument is being talked here?

A

Promissory Note

B

Cheque

C

Hundi

D

All of the above

A minor borrowed some money on a promissory note. After attaining majority, he executed another promissory note in respect of the original loan plus the accrued interest. The creditor filed a suit to recover the money on the basis of the second promissory note. The suit is liable

A

To be dismissed as the money was not advanced to the minor for necessaries

B

To be dismissed as the first promissory note being void cannot constitute a valid consideration

C

To be decreed as the second promissory note was executed when the debtor had become major

D

To be decreed as the loan given under the first promissory note constitutes past consideration and the past consideration is valid under the Indian law

Which of the following are presumptions as to a negotiable instrument under section 118 of the Negotiable Instruments Act? Answer using given below:
(1) Presumption of contractual capacity
(2) Presumption of consideration
(3) Presumption of maturity of instrument
(4) Presumption of date

A

Only (1) and (3)

B

Only (2) and (4)

C

Only (1) and (4)

D

Only (1) and (2)

A' signs instruments in the following terms, which instruments are promissory note under Section 4 of the Negotiable Instruments Act, 1881?

A

I promise to pay 'B' or order Rs. 500/- to be paid on demand

B

I promise to pay 'B' Rs. 5000/- and all other some which shall be due to him

C

I promise to pay 'B' Rs. 5000/- first deducting there out any money which he may own me

D

I promise to pay 'B' Rs. 5000/- ten days after my marriage with 'C'

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

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