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WorksheetsNI Act
Total questions: 25
Worksheet time: 17mins
In case of a Promissory Note, there are:
3 Parties
5 Parties
2 Parties
4 Parties
A Cheque:
Is a type of bill of exchange
Includes electronic image of a truncated cheque
Payable on demand
All of these
A Bill of Exchange is:
A conditional promise to pay
An unconditional order to pay
An unconditional promise to pay
A conditional order to pay
Which of these is not a Negotiable Instrument according to Negotiable Instruments Act, 1881?
Cheque
Bill of Exchange
Currency Note
Promissory Note
The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount?
15
25
30
20
If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
24
36
48
60
If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __
All the parties except minor
All the parties including minor
Minor Only
Minor and the Drawee
A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:
M is liable to X
X can proceed against A
No one is liable in this case
M can proceed against A
A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C without consideration. C transferred it to D for value. Decide as per the provisions of the Negotiable Instruments Act, 1881
D can sue only A
D can sue A or B only
D can sue any of the parties A, B or C
D cannot sue any of the parties A, B or C
Who should make a complaint to a court for the purpose of taking cognizance of an offence under section 138?
The holder in due course of the cheque
Any person who is entitled to get payment
The payee
All of these
'At sight' under section 21 of the Negotiable Instrument Act, 1881, means
On presentation
On demand
On coming into vision
None of these
If an instrument may be construed either as a promissory note or bill of exchange, it is
A valid instrument
An ambiguous instrument
A returnable instrument
None of these
Every instrument is presumed to made, drawn, endorsed or negotiated for ________.
Choice
Consideration
Debt
None of these
Drawer and payee in a Bill of exchange may be same parties.
True
False
Partly true
Partly false
Cheque is a special kind of Bill of Exchange
True
False
Partly true
Partly false
Cheque is always payable on demand.
True
False
Partly true
Partly false
Validity of Cheque is 6 months
True
False
Partly true
Partly false
Cheque doesn’t require any stamping.
True
False
Partly true
Partly false
A promissory note is an instrument in writing containing an unconditional undertakings, signed by the maker to pay …..to, or to order of a certain person, or only to bearer of the instrument.
A certain type of goods
A certain type of old coins
A certain of money
Any of these
A promissory note is an instrument …….. containing an unconditional undertakings signed by the maker to pay a certain sum of money to, or to the order of, a certain sum of money to or to the order of, a certain person, or only to bearer of the instrument.
in writing
made orally
partly in writing
partly in writing and partly orally
Which of the following can Not be considered as characteristic of negotiable instruments?
A holder do not gets the instruments free from all defects of title of any previous holder.
The instruments is transferable till maturity
They are freely transferable.
All of these
A promissory note is an instrument in writing containing an unconditional undertakings signed by the ….. to pay a certain sum of money to, or to the order of, certain person, or only to bearer of the instrument.
payee
holder
endorser
maker
A promissory note or a bill of exchange payable after a fixed period, or after sight, or on specified day or on the happening of an event which is certain to happen, is known as a __________
Time instrument
Demand instrument
Foreign instrument
An inland instrument
A promissory note, bill of exchange or cheque is payable to bearer when-
it is expressed to be payable to a particular person
it is expressed to be further transferable
the only or last endorsement on the instrument is an endorsement in blank
if the holder obtains it in due course
Which of the following can be considered as characteristic of negotiable instruments?
The holder of the instruments is presumed to be the owner.
They are transferable subject the condition.
They are transferable subject to restriction.
Negotiable instruments are always payable to order
