Negotiable Instruments Act Law 100 MCQ With Free Exam SET:-1

Q61. Which of the following presumption is prescribed under section 118 Negotiable Instruments Act ?

(A) Of consideration
(B) As to date
(C) As to time of acceptance
(D) All of these

Answer: All of these

Q62. Which of the following is not a Bill of Exchange ?

(A) Share
(B) Demand Draft
(C) Post-dated Cheque
(D) None of these

Answer: Share

Q63. The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):

(A) 13th August, 2017
(B) 14th August, 2017
(C) 16th August, 2017
(D) 15th August, 2017

Answer: 14th August, 2017

Q64. In a promissory note, the amount of money payable

(A) Must be certain
(B) May be certain or uncertain
(C) Is usually uncertain
(D) None of the above

Answer: Must be certain

Q65. Under Section 118 of Negotiable Instruments Act, 1881, what presumption shall not be made ?

(A) The holder of a cheque received the cheque for the discharge of any debt or other liability
(B) Consideration
(C) Time of acceptance
(D) Order of indorsements

Answer: The holder of a cheque received the cheque for the discharge of any debt or other liability

Q66. Crossing of cheque affects the

(A) Negotiability of the cheque
(B) Mode of payment on the cheque
(C) Both (A) and (B)
(D) None of the above

Answer: Mode of payment on the cheque

Q67. In which of the following case the Supreme Court held that the persons who are sought to be made vicariously liable for a criminal offence under section 141 should be at the time the offfence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company. Every person connected w ith the company shall not fall within the ambit of the provision ?

(A) National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330
(B) State of Bihar v. Kalyanpur Cement Ltd. (2010) 3 SCC 274
(C) Rakesh Kumar v. U.P.I.D.C. Ltd., AIR 2010 SC 2451
(D) None of the above

Answer: National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330

Q68. How much punishment is provided under Section 138 of Negotiable Instruments Act, 1881 ?

(A) Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both
(B) Imprisonment for term which may extend to one year or with fine which may extend to twice the amount of the cheque or with both
(C) Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque
(D) Only imprisonment for term which may extended to two years

Answer: Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both

Q69. A person who receives a negotiable instrument in good faith for valuable consideration is known as

(A) Holder of value
(B) Holder
(C) Holder in rights
(D) Holder in due course

Answer: Holder in due course

Q70. The liability under section 138 of the Negotiable Instruments Act, 1881 is

(A) Strict liability
(B) Vicarious liability
(C) Both (A) and (B)
(D) None of the above

Answer: Strict liability