The Negotiable Instruments Act, 1881 – Test 3

Bearer instrument means an instrument

Every negotiable instrument shall be

___________ does not require payment of stamp duty

Endorsement means signing on ____________ for the purpose of negotiating such negotiable instrument

Where the endorsement contains a direction to pay the amount mentioned in the negotiable instrument to a
specified person, it is called as __________

_____________ may be presented for payment at any time

In a promissory note or a bill of exchange, the expressions ‘at sight’ means ___________

In a promissory note, the expression ‘after sight’ means ____________

Statement (1): A negotiable instrument which is payable otherwise than on demand is not entitled to any days
of grace.
Statement (2): A negotiable instrument which is payable on demand is entitled to 3 days of grace.

____________ is not entitled to any days of grace.

A promissory note in which the maker is a minor ___________

As per section 31 or RBI Act, 1934, ___________ cannot be made payable to bearer and _________cannot
be made payable to bearer on demand.

A bearer instrument can be negotiated by ____________

Notice of negotiation is __________

An order instrument can be negotiated by ________

Where an endorser makes his liability dependent upon happening of a specified event, although such event may
never happen, it is called as __________ endorsement, and such endorsement is___________

If a person, after making, but before making its delivery, dies, and afterwards, the delivery is made by the legal
representative of the deceased, it ________ in a valid negotiation.

A negotiable instrument confers upon ___________ a valid title notwithstanding any defect in the title of any
prior party

A negotiable instrument may be negotiated until ____________

Where a promissory note is payable ___________ and is ____________ at a specified place, no
presentation is necessary in order to charge the maker thereof.

In case of any reasonable suspicion about the genuineness of an electronic image of truncated cheque,
________ is entitled to demand any further information regarding the truncated cheque and demand the
presentation of truncated cheque itself for verification.

A cheque must, in order to charge any person except drawer, be presented within __________ after delivery
thereof by such person

Where the drawee agrees to make the payment at a time other than the time stated in the bill, it ___________

If a blank endorsement is converted into an endorsement in full, ___________ are discharged

Statement (1): Conversion of a bearer instrument into an order instrument by deleting the word ‘bearer’ is a
material alteration.
Statement (2): Conversion of a bearer instrument into an order instrument by deleting the word ‘bearer’ is
authorized by the Act.
Statement (3): Where the bearer instrument is converted into an order instrument by deleting the word
‘bearer’ all the parties to the negotiable instrument not consenting to the same are discharged

Where a bill is not accepted by the drawee within ___________ of presentment of bill, it is dishonoured by
non-acceptance

__________ cannot be dishonoured by non-acceptance

When a promissory note or a bill of exchange has been dishonoured by non-acceptance or non-payment, the
holder may, within ___________, cause such dishonour to be noted and certified by notary public

The payer for honour is entitled to recover all the sums paid by him from ___________

Statement (1): It is presumption of law that every negotiable instrument bearing a date was made or drawn
on such date.
Statement (2): It is presumption of law that every lost promissory note or bill was duly stamped