Question

Q31) The term ‘negotiation’ in section 14 of the Negotiable Instruments Act, 1881 refers to

A.the transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof

B.the payment by a bank on a negotiable instrument after due verification of the instrument

C.the bargaining between the parties to a negotiable instrument

D.all of the above​

Answer 1

D. All of the above

Answer 2

The correct answer is option (D)

Explanation:

• The term ‘negotiation’ in section 14 of the Negotiable Instruments Act, 1881 refers to the transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute the person the holder thereof , the payment by a bank on a negotiable instrument after due verification of the instrument , and the bargaining between the parties to a negotiable instrument.
• The word Negotiation simply means a “Transfer”.
• Section 14 of the Negotiable Instrument Act, 1881 says that when a negotiable instrument is transferred to any person with a view to constitute the person holder thereof, the instrument is deemed to have been negotiated.