The Negotiable Instruments Act-1881 – IMPORTANT QUESTIONS – Business Law – B.Com – Dibrugarh University – As per CBCS System

Important Questions

Unit IV

Law of Negotiable instruments

Promissory Notes, Bills of exchange and cheques

Long questions

1. What is a bill of exchange? How does it differ from a promissory note and a cheque?
2. Define promissory note. Distinguish it from a bill of exchange?
3. 3.    What is meant by the term ‘crossing a cheque’? What are the various types of crossings?
4. Distinguish between general and specific crossing.

Negotiation

Long questions    

1. Define the term ‘endorsement’. What are the various types of endorsements?
2. Discuss the rules regarding negotiation of a lost instrument, a forged instrument, an instrument obtained by fraud, or for unlawful considering.

Dishonor of Negotiable Instrument

Short questions

1. What is meant by dishonor of a negotiable instrument?
2. In what ways does dishonor of a bill by non-acceptance take place?
3. Is a bill treated as dishonor when drawee is incompetent to contract?
4. What is meant by nothing?
5. Is nothing compulsory?
6. What is protest?

   Long questions

1. What is meant by dishonor by non-acceptance and dishonor by non-payment?
2. State the cases where notice of dishonor is not necessary.
3. State the latest provisions(as amended in 2002) relating to bouncing of chequeas.