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CA Foundation Negotiable Instruments Act 1881 — practice questions — page 3

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 61–90 of 90.

Absent proof otherwise, the holder of an instrument is presumed to be:Read the answer and worked solution →On proof of protest, the court presumes the fact of:Read the answer and worked solution →A maker cannot deny the instrument's original validity in a suit by:Read the answer and worked solution →An indorser cannot deny the signature or capacity of:Read the answer and worked solution →A cheque with two parallel transverse lines across it is crossed:Read the answer and worked solution →A cheque bearing a banker's name across its face is crossed:Read the answer and worked solution →An uncrossed cheque may be crossed by the holder:Read the answer and worked solution →A banker must not pay a generally crossed cheque except to a:Read the answer and worked solution →A specially crossed cheque must be refused payment if crossed to:Read the answer and worked solution →A taker of a 'not negotiable' crossed cheque cannot get:Read the answer and worked solution →A banker paying a crossed cheque out of due course is liable to the:Read the answer and worked solution →The maximum imprisonment under Section 138 is:Read the answer and worked solution →The fine under Section 138 may extend to what multiple of the cheque amount?Read the answer and worked solution →A cheque must be presented within six months or its validity period, whichever is:Read the answer and worked solution →After learning a cheque was returned, the payee must send notice within:Read the answer and worked solution →After getting the Section 138 demand notice, the drawer has to pay within:Read the answer and worked solution →In Section 138, 'debt or other liability' means a:Read the answer and worked solution →Section 139 presumes the holder received the cheque to discharge a:Read the answer and worked solution →Under Section 140, is it a defence that the drawer expected the cheque to clear?Read the answer and worked solution →When a company commits a Section 138 offence, who is also deemed guilty?Read the answer and worked solution →For Section 141, the word company includes:Read the answer and worked solution →A Section 138 complaint is due within what time of the cause of action?Read the answer and worked solution →Which court may try a Section 138 offence?Read the answer and worked solution →Cheque dishonour trials under the Act should aim to end within:Read the answer and worked solution →Interim compensation under Section 143A cannot exceed what share of the cheque?Read the answer and worked solution →Interim compensation under Section 143A must ordinarily be paid within:Read the answer and worked solution →Interim compensation in cheque dishonour cases was added by the Act of:Read the answer and worked solution →Criminal liability for cheque dishonour entered the Act through an amendment of:Read the answer and worked solution →The 2002 amendment of the Act inserted new sections numbered:Read the answer and worked solution →The Negotiable Instruments Act was passed as Act No. 26 of the year:Read the answer and worked solution →

Worked practice questions

Absent proof otherwise, the holder of an instrument is presumed to be:

  1. A donee of the payee
  2. A mere agent only
  3. A holder in due course
  4. A later transferee
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Correct answer: C. A holder in due course

Section 118(g) presumes the holder is a holder in due course, subject to the fraud proviso.

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On proof of protest, the court presumes the fact of:

  1. Forgery
  2. Payment
  3. Dishonour
  4. Acceptance
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Correct answer: C. Dishonour

Section 119 directs the court to presume dishonour on proof of the protest, until disproved.

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A maker cannot deny the instrument's original validity in a suit by:

  1. A person finding it
  2. The drawee bank
  3. A notary public
  4. A holder in due course
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Correct answer: D. A holder in due course

Section 120 estops makers and drawers from denying original validity in a suit by a holder in due course.

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