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Question

Which of the following does not form the part of a Negotiable Instrument as per Negotiable Instruments Act, 1881?

A Cheque Correct Answer Incorrect Answer
B Bill of Exchange Correct Answer Incorrect Answer
C Currency Note Correct Answer Incorrect Answer
D Promissory Note Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

A negotiable instrument is a commercial document in writing that contains an order for payment of money either on demand or after a certain time. There are of three types of Negotiable Instrument as per Negotiable Instruments Act, 1881:        I.        Bills of exchange      II.        Promissory notes     III.        Cheques Currency is a legal tender, guaranteed by the government to transfer value but the Negotiable Instruments have following characteristics. ·         It is written document signed and stamped by the maker/drawer. ·         It has a specific payee to whom the value is transferable. ·         Negotiable Instruments requires acceptance and endorsement.

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