New NABARD Workshop - Last 4 year trend. March 5 at 5 PM. Register here

    Question

    Under Negotiable Instrument Act, no notice of dishonour

    is necessary
    A To charge the drawers, when the acceptor is also a drawer Correct Answer Incorrect Answer
    B When the party entitled to notice cannot after due search be found Correct Answer Incorrect Answer
    C In the case of a promissory note which is not negotiable Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Section 98 of Negotiable Instrument Act- . When notice of dishonour is unnecessary—No notice of dishonour is necessary— (a) when it is dispensed with by the party entitled thereto; (b) in order to charge the drawer, when he has countermanded payment; (c)when the party charged could not suffer damage for want of notice; (d) when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it; (e) to charge the drawers, when the acceptor is also a drawer; (f) in the case of a promissory note which is not negotiable; (g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.

    Practice Next