New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Every prior party to a negotiable instrument is liable

    thereon to a holder in due course.
    A Until the instrument is presented Correct Answer Incorrect Answer
    B Until the instrument matures Correct Answer Incorrect Answer
    C Until the instrument is accepted Correct Answer Incorrect Answer
    D Until the instrument is duly satisfied Correct Answer Incorrect Answer

    Solution

    Section 36 of Negotiable Instruments Act: Liability of prior parties to holder in due course—Every prior party to a negotiable instrument is liable thereon to a holder in due course until the instrument is duly satisfied.

    Practice Next