alleryStart learning →Absent proof otherwise, the holder of an instrument is presumed to be:
AA donee of the payee
BA mere agent only
CA holder in due course
DA later transferee
Answer & Solution
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.
Keep practising Negotiable Instruments Act 1881
Browse all Negotiable Instruments Act 1881 questions for CA Foundation, or explore more Businesslaw topics.
Related questions
The Negotiable Instruments Act was passed as Act No. 26 of the year:The 2002 amendment of the Act inserted new sections numbered:Criminal liability for cheque dishonour entered the Act through an amendment of:Interim compensation in cheque dishonour cases was added by the Act of:Interim compensation under Section 143A must ordinarily be paid within:Interim compensation under Section 143A cannot exceed what share of the cheque?Cheque dishonour trials under the Act should aim to end within:Which court may try a Section 138 offence?