12th Standard English Medium Commerce Subject The Negotiable Instruments Act, 1881 Book Back 3 Mark Questions with Solution Part - I updated Book back Questions | QB365

12th Standard Syllabus & Materials

12th Standard

TN 12th Computer Applications மின்னணு தரவு பரிமாற்றம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிக பாதுகாப்பு அமைப்புகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின்னணு செலுத்தல் முறைகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிகம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications திறந்த மூல கருத்துருக்கள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications வலையமைப்பு வடமிடல் Sample Question Papers Study Material - QB365 Set A

12th Standard English Medium Commerce Subject The Negotiable Instruments Act, 1881 Book Back 3 Mark Questions with Solution Part - I updated Book back Questions

Published on: 13/05/2022

QB365 provides detailed and simple solution for every Book back Questions in class 12 Commerce Subject. It will helps to get more idea about question pattern in every book back questions with solution.

latest Book back Questions

Download Tamil Nadu 12th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Commerce Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Commerce

chapter: - Book back Questions

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 3

5 x 3 = 15

Draw the two different types of crossing.

Distinguish between Bill of Exchange & Promissory Note.

What are the characteristics of a bill of exchange?

Distinguish between Negotiability and Assignability.

Explain the nature of a Negotiable Instrument.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 3

5 x 3 = 15

Crossing is of two types: General crossing and special crossing
General Crossing:
1. It is according to section 123 of the Negotiable Instruments Act, 1881.
2. "Where a cheque bears across its face with 'and company" or any abbreviation between two parallel transverse lines with or without the words 'not negotiable, the cheque shall be deemed to be crossed generally':
Special Crossing:
1. It is according to section 124 of the Negotiable Instruments Act, 1881.
2. "Where a cheque bears across its face an addition of the name of a banker with or without the words 'not negotiable, the cheque shall be deemed to be crossed specially and to be crossed to the bankers".

SI.No.	Basis of Difference	Bill of Exchange	Promissory Note
1.	Nature of Undertaking	A bill of exchange contains an unconditional order to pay money.	A promissory note contains an unconditional undertaking to pay money.
2.	No. of Parties	There are three parties in a bill of exchange drawer, drawee and payee.	In a promissory note, there are only two parties the maker and the payee.
3.	Drawer of the instrument	A creditor draws a bill on a debtor.	A debtor executes a promissory note in favour of a creditor.
4.	Conditionality	A bill may be accepted conditionally.	A note cannot be made conditional.

Characteristics of a bill of exchange
(i) A bill of exchange is a document in writing.
(ii) The document must contain an order to pay.
(iii) The order must be unconditional.
(iv) The instrument must be signed by the person who draws it.
(v) The name of the person on whom the bill is drawn must be specified in the bill itself.
(vi) The amount that isrequired to be paid must also be specified in the bill.

SI.No	Basis of Difference	Negotiability	Assignability
1.	Legal ownership	It passes to the transferee by mere endorsement in the case of a bearer instrument and by endorsement and delivert in the case of an order instrument.	An assignment can be made by observing certain formalities. For instance, an instrument is to be made in writing, duly stamped and igned by the transferor or his agent.
2.	Notice	Notice is not necessary for the holder of negotiable instrument to claim the payment from the debtor.	In case of actionable claim, notice of the assignment by the transferee regarding the transfer of debt to the debtor is necessary.
3.	Nature of title	Holder of negotiable instrument in due course gets a better title than even the transferor.	The transferee's title to the instrument is subject to the defects of the transferor's title.
4.	Consideration	Consideration is presumed	The assignee has to prove the consideration for the transfer.

(i) The word 'Negotiable' means transferable from one person to another in return for consideration
(ii) The word 'Instrument' means a written document by which a right is created in favour of certain person.
(iii) A negotiable instrument is a document which entitles a person to a certain . sum of money and which is transferable from one person to another by mere delivery or by endorsement and delivery.
(iv) The law relating to negotiable instruments is dealt in the Negotiable Instruments Act 1881.
(v) This Act speaks about promissory note, bills of exchange and cheques.