BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of these is not a negotiable instrument as per negotiable instrument act 1881?
|
|
Bill of Exchange
|
|
|
Delivery Note
|
|
|
Bearer Cheque
|
|
|
Share Certificate
|
Explanation:
Detailed explanation-1: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.
Detailed explanation-2: -a Hundi is an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order. Hundis, being a part of the informal system have no legal status and are not covered under the Negotiable Instruments Act, 1881.
Detailed explanation-3: -A promissory note, bill of exchange or cheque payable to bearer is negotiable by the delivery thereof. A promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement and delivery thereof.
There is 1 question to complete.