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Bill of Exchange is governed by which Act in India?
AIndian Contract Act 1872 (typical)
BSale of Goods Act 1930 (typical)
CCompanies Act 2013 (typical)
DNegotiable Instruments Act 1881
Answer & Solution
Correct answer: D. Negotiable Instruments Act 1881
1. The Negotiable Instruments Act 1881 governs bills of exchange, promissory notes and cheques.
2. It defines parties, acceptance, endorsement, discharge, dishonour and protest.
3. The other Acts deal with general contracts, companies and sale of goods.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.1 ¶§7.1_