Negotiability means transfer of an instrument from a person/entity to another person/entity.This transfer should be without restriction and in good faith.
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.
According to Section 13 (a) of the Act, “Negotiable instrument
means a promissory note, bill of exchange or cheque payable either to
order or to bearer, whether the word “order” or “ bearer” appear on the
instrument or not.”
"A Negotiable instrument means a promissory note,bill of exchange or cheque payable either to order or bearer".
The following are Nogotiable instruments
The NI Act has 147 sections.Draft was not included and was made included in the section 85(a).
Currency note is not a negotiable instrument as per section 21 of the indian currency Act.
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.
According to Section 13 (a) of the Act, “Negotiable instrument
means a promissory note, bill of exchange or cheque payable either to
order or to bearer, whether the word “order” or “ bearer” appear on the
instrument or not.”
"A Negotiable instrument means a promissory note,bill of exchange or cheque payable either to order or bearer".
The following are Nogotiable instruments
- Promissory Notes
- Checks
- Drafts
- Bill Of Exchanges
- Bank Notes(not a currency)
The NI Act has 147 sections.Draft was not included and was made included in the section 85(a).
Currency note is not a negotiable instrument as per section 21 of the indian currency Act.
Questions About Negotiable Instruments Act
1.The Negotiable Instruments Act 1881 came into effect from?
- 1st March 1882
2.The Negotiable Instruments Act 1881 is applicable in
- The whole India including Jammu & Kashmir
3.Negotiable instruments are defined under
- Sec 13 of NI Act
4.Withdrawal slips used in SB accounts are
- Non-negotiable instruments
5.Having regard to Section 118 NI Act, consideration in the case of a negotiable instrument is
- Presumed
6.Which of the following instruments can not be made payable otherwise than on demand?
- Cheque
7.If no time is specified in a promissory note or bill of exchange, such instrument is considered as?
- Payable on demand
8.A minor is incompetent to be a?
- Drawee
9.The term ‘holder’ refers to the person?
- Who is entitled to possess the instrument in his own name and to recover the amount there under
10.Which of the following are the rights of the holder?
- A holder can convert the blank endorsement to an endorsement in full
- A holder can obtain a duplicate of the lost bill giving an indemnity if so required by the drawer
- A holder has the right to sue in his own name on the instrument
11.Which of the following condition is not necessary to qualify as a holder in due course
- The holder must have taken the instrument under lawful consideration
- The holder must have taken the instrument with good faith and without negligence or suspicion
- The holder must have taken the instrument before maturity of the instrument
12.A person cannot claim to be a holder in due course but may at most be a holder if he takes
- An instrument which is irregular on the face of it
- An instrument which is overdue
- An inchoate instrument
13.
