The Negotiable Instruments Act, 1881 – Test 2

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

Maker of a bill of exchange is called as ____________

Days of grace provided to the Instruments at maturity is _______________

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

Validity period for the presentment of cheque in bank is _______________

Offences committed under the Negotiable Instruments Act can be _______________

Which of the following is not applicable to negotiable instruments?

‘A’ signs the instrument in the following manner. State the instrument which cannot be considered as promissory
note.

A promissory note drawn jointly by X, a minor and Y, a major is:

A negotiable instrument that is payable to order can be transferred by:

In legal terms, person who takes the instruments bonafide for value before it is overdue, in good faith, is known
as:

A negotiable instrument drawn in favour of a minor is

P obtains a cheque drawn by M by way of gift. Here P is a:

A bill of exchange is payable 180 days after sight. As per the provisions of the Negotiable Instruments Act, 1881,
how many days of grace shall be provided in such a case:

As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or bill of exchange is at
maturity is a public holiday, the instrument shall be deemed to be due on the …….……..

Person named in the instrument to whom money is directed to be paid:

A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque is dishonoured by
the bank on grounds of inadequate funds. As per the provisions of Negotiable Instruments Act, 1881:

An instrument containing a promise to __________ is valid promissory note.

In case on an accepted bill, the liability of drawer is __________

Until the bill is accepted, the liability of drawer is __________.

Until the bill is accepted, the liability of drawee is __________.

In case of an accepted bill, the liability of drawee is __________

In case of cheque, the liability of drawer is __________.

A truncated cheque means a cheque which is truncated during the course of clearing cycle by __________

A cheque is ___________

The drawee of a bill of exchange, may accept it by signing on ___________

A person obtains a negotiable instrument by way of gift is a ___________

___________ is a negotiable instrument.

Every negotiable instrument shall be –

A negotiable instrument shall be payable to ____________ is an order instrument