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CA Foundation Negotiable Instruments Act 1881 — practice questions — page 2

Explore 90 free Negotiable Instruments Act 1881 questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Negotiable Instruments Act 1881 questions and exercises with answers

Showing questions 31–60 of 90.

A maker of a promissory note and an acceptor of a bill are liable as:Read the answer and worked solution →Drawees of a bill who are not partners may each accept it:Read the answer and worked solution →An indorser who delivers before maturity is liable on dishonour to:Read the answer and worked solution →An indorser who signs 'Without recourse' incurs:Read the answer and worked solution →Every prior party is liable to a holder in due course until the instrument is:Read the answer and worked solution →If a bill is lost before it is overdue, the holder may ask the drawer for:Read the answer and worked solution →Making, acceptance or indorsement of an instrument is completed by:Read the answer and worked solution →A cheque payable to bearer is negotiated by:Read the answer and worked solution →Indorsement followed by delivery transfers to the indorsee:Read the answer and worked solution →A purported indorsement transferring only part of the sum due is:Read the answer and worked solution →A person who derives title from a holder in due course has:Read the answer and worked solution →A person who acquires an instrument after maturity has only:Read the answer and worked solution →A drawee may require the holder to allow how many hours to consider acceptance?Read the answer and worked solution →Allowing the drawee more than the permitted time to accept discharges:Read the answer and worked solution →Presentment for payment at a banker's must be made during:Read the answer and worked solution →To charge anyone but the drawer, a cheque must be presented within:Read the answer and worked solution →Presentment for payment is unnecessary where the maker:Read the answer and worked solution →If no interest rate is stated, interest runs per annum under Section 80 at:Read the answer and worked solution →A holder cancels an indorser's name intending to discharge him. The indorser is:Read the answer and worked solution →A material alteration makes the instrument void against:Read the answer and worked solution →A material alteration does not avoid the instrument if made to carry out the:Read the answer and worked solution →A cheque is dishonoured by non-payment when the drawee:Read the answer and worked solution →Under Section 94, a notice of dishonour may be:Read the answer and worked solution →A properly addressed notice sent by post that miscarries is:Read the answer and worked solution →No notice of dishonour is needed to charge the drawer if he has:Read the answer and worked solution →Who records the dishonour of a bill upon the instrument under Section 99?Read the answer and worked solution →A notary public's certificate of noted dishonour is called a:Read the answer and worked solution →In judging reasonable time, public holidays are:Read the answer and worked solution →Parties in different places: notice is timely if dispatched by the:Read the answer and worked solution →Until the contrary is proved, a negotiable instrument is presumed made for:Read the answer and worked solution →

Worked practice questions

A maker of a promissory note and an acceptor of a bill are liable as:

  1. Mere agents
  2. Co-guarantors
  3. Sureties only
  4. Principal debtors
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Correct answer: D. Principal debtors

Section 37 makes the maker, the acceptor and the drawer before acceptance principal debtors, with other parties as sureties.

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Drawees of a bill who are not partners may each accept it:

  1. For himself only
  2. For all drawees
  3. Only with the drawer
  4. Only all jointly
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Correct answer: A. For himself only

Section 34 lets each non-partner drawee accept for himself, but none can accept for another without authority.

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An indorser who delivers before maturity is liable on dishonour to:

  1. Only the drawer
  2. Every later holder
  3. Only next indorsee
  4. Only the payee named
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Correct answer: B. Every later holder

Section 35 binds the indorser to compensate every subsequent holder if the drawee, acceptor or maker dishonours, subject to due notice.

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