ASSIGNMENT 2A Negotiable

Instruments Act 1881 Mar 2021

Total points 8/10

Email *

kavithasreem2@gmail.com

Phone number *

8921271688

First Name *

Kavithasree

Last Name *

1. Which one is not a negotiable instrument covered under the 1/1

Negotiable Instruments Act 1881? *

Cheque

Hundi

Bill of exchange

Promissory Note

2. Which of the following is not a method of discharging a negotiable 1/1

instrument? *

Payment in due course

Non-Presentment for acceptance of a bill of exchange

Material Alteration

Endorsement
 3. Which of the following method of negotiation is not covered under 0/1
the negotiable instruments act? *

Assignment

Endorsement

Negotiation Back

Delivery

Correct answer

Assignment

4. What are the differences between Promissory Note and Bill of 1/1
Exchange (Select all correct answers) *

Promissory Note has a minimum of 2 parties and Bill of Exchange has a

minimum of 3

Promissory note is a Promise to pay and the Bill of exchange is an Order to pay.

Promissory note cannot be drawn without the name of a payee, Bill of Exchange
can have the drawer and the payee as the same individual

Promissory notes are illegal, Bill of Exchange are legal instruments

5. Crossing is mandatory for cheques * 1/1

True

False

6. Drawee of a .............. must always be a banker * 1/1

Cheque

Hundi

Bill of Exchange

Promissory Note

7. Drawee in case of need gets a better title than the holder of an 1/1
instrument only if: *

the instrument is received in good faith and for valuable consideration

the instrument is not negotiable

the instrument is not endorsed

the instrument is not disputed by the drawer

 8. A promissory note is stamped and signed with the words, "I promise to1/1
pay a sum of Rs. 5,000 only with interest thereon." Is this note valid? *

Yes, because the repo rate will be used to arrive at the interest amount

No, because the amount is not certain

Valid only upto Rs. 5,000/-

Not valid only if there is a dispute regarding the interest rate.

9. Select the parties who are competent to endorse a negotiable 0/1

instrument *

Minor

Undischarged Insolvent

A person of integrity above the age of 18

A person of unsound mind

A business owner

A professional

Correct answer

A person of integrity above the age of 18

A business owner

A professional

10. A notice of dishonour given by a stranger is valid * 1/1

True

False

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