Negotiable Instrument Act Quiz

1. Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?

Correct! Wrong!

2. Which of the followings are not the Negotiable Instruments as defined by the Statute_______?

Correct! Wrong!

3. Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is______? (I) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act (II) Containing an Unconditional undertaking (III) To pay a certain sum of money only to a specific person or the bearer (IV) The seller is bound to accept the Promissory note

Correct! Wrong!

4. Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable Instrument Act 1882______?

Correct! Wrong!

5. 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?

Correct! Wrong!

6. Which of the following is/are true about Bill of Exchange? (I) A bill of exchange requires in its inception two parties./ (II) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee./ (III) 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./ (IV) Definition of “Bill of Exchange” is mentioned in Section 6 of the Negotiable Instrument Act

Correct! Wrong!

7. 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.

Correct! Wrong!

8. Section 6 of the Negotiable Instruments Act defines ________?

Correct! Wrong!

9. If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds _______?

Correct! Wrong!

10. Which of the following is/are false about Dishonour of Cheque? (I) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account./ (II) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier./ (III) Imprisonment for such offence may be extended for period of five year./ (IV) Section 138 apply unless; the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Correct! Wrong!

11. Person named in the instrument to whom money is directed to be paid is known as _______________?

Correct! Wrong!

12. Maker of a bill of exchange is called as ____________?

Correct! Wrong!

13. Days of grace provided to the Instruments at maturity is _____________?

Correct! Wrong!

14. Parties to a negotiable instrument can be discharged from liability by ______________?

Correct! Wrong!

15. Validity period for the presentment of cheque in bank is _____________?

Correct! Wrong!

16. Offences committed under the Negotiable Instruments Act can be _______________?

Correct! Wrong!

17. A negotiable instrument that is payable to order can be transferred by?

Correct! Wrong!

18. A negotiable instrument drawn in favour of minor is?

Correct! Wrong!

19. Which of the following is not applicable to negotiable instruments?

Correct! Wrong!

20. Person named in the instrument to whom money is directed to be paid?

Correct! Wrong!

Negotiable Instrument Act Quiz

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