Question
What is the purpose of the Negotiable Instruments Act,
1881? ÂSolution
The Negotiable Instruments Act, 1881 is a law in India that provides a legal framework for the use of negotiable instruments such as cheques, promissory notes, and bills of exchange. The act defines the rights and obligations of parties involved in the use of negotiable instruments and provides legal remedies in case of any disputes. The act also provides guidelines for the endorsement, transfer, and payment of negotiable instruments. The act is important for facilitating the smooth functioning of financial transactions in India. Hence, option C is correct.
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