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Question

The word ‘negotiation’ was defined in the NI Act, 1881 under Section:

This question was previously asked in
MH SET 2023 Paper 2 Computer Science and Applications Question Paper (26-Mar-2023)
The correct answer is

14

Sec. 14 of the Negotiable Instruments Act, 1881 defines 'Negotiation': when a promissory note, bill of exchange or cheque is transferred to any person so as to constitute that person the holder thereof, the instrument is said to be negotiated.

The other provisions deal with different matters: Sec. 12 (negotiable instrument payable on demand), Sec. 13 (negotiable instrument defined) and Sec. 15 (indorsement).

Hence, the answer is 14.

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Similar Questions

  1. The following one is absolutely essential for a special crossing :

  2. Non-acceptance is a valid mode of dishonour for :

  3. Days of grace under NI Act, 1881 applicable to :

  4. Which section of the NI Act, 1881 justifies the dishonour of the cheque ?


Important Questions from Negotiable instrument Act, 1881

  1. Which of the following is not a negotiable instrument?
  2. Match List – I with List – II and select the correct answer using the codes given below :
    List – IList – II
    i. Inchoate stamped instrumenta. Union Bank of India Vs. Ankur Corp.
    ii. Liability of acceptor of a negotiable instrumentb. Section 31 of the Negotiable Instrument Act
    iii. Liability of an endorserc. Section 35 of the Negotiable Instrument Act.
    iv. Liability of the drawee of a cheque.d. Section 20 of the Negotiable Instrument Act.

    Codes :
  3. Which of the following statements are correct ? Answer using codes given below :
    In order that a person can be called a holder in due course, he must show :
    i. that he is the drawer of the negotiable instrument.
    ii. that he has obtained it without consideration.
    iii. that he has obtained it before the maturity of the negotiable instrument.
    iv. that he has obtained the negotiable instrument in good faith.

    Codes :
  4. 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 :
  5. Which one of the following statements is true ?
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