Assertion (A) : A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Reason (R) : Because it is said so under Section 13 of the Negotiable Instruments Act, 1881.
Analyzing Assertion (A): Negotiable Instrument Definition
The statement defines a 'negotiable instrument' as a promissory note, bill of exchange, or cheque that is payable either to order or to bearer.
This definition accurately reflects the core characteristics of instruments that can be transferred freely.
Examining Reason (R): Legal Basis
The statement attributes this definition to Section 13 of the Negotiable Instruments Act, 1881.
This section indeed provides the statutory definition for negotiable instruments under Indian law.
Evaluating Explanation and Correctness
Assertion (A) is factually correct regarding the definition of a negotiable instrument.
Reason (R) is also factually correct, as Section 13 of the Negotiable Instruments Act, 1881, contains this definition.
Furthermore, Reason (R) correctly explains Assertion (A) because the statutory provision cited is the foundation and justification for the definition presented in Assertion (A).
Therefore, both statements are true, and (R) is the correct explanation of (A).
Important Questions from Negotiable instrument Act, 1881
- Which of the following is not true in the context of a promissory note?
- Which of the following is not a negotiable instrument?
- Read Assertion (A) and Reason (R) and answer using code below :
Assertion (A) : Where a bill is unintentionally cancelled by the holder or his agent and the cancellation is not apparent thereon, the bill is discharged.
Reason (R) : Above principle is laid down in Section 82 of the Negotiable Instruments Act.
Code : - Which one of the following statements is true ?
- Match List – I with List – II and select the correct answer using the codes given below :
List – I List – II i. Inchoate stamped instrument a. Union Bank of India Vs. Ankur Corp. ii. Liability of acceptor of a negotiable instrument b. Section 31 of the Negotiable Instrument Act iii. Liability of an endorser c. Section 35 of the Negotiable Instrument Act. iv. Liability of the drawee of a cheque. d. Section 20 of the Negotiable Instrument Act.
Codes :
