Q.Write any three presumptions to Negotiable Instruments.

Under the Negotiable Instruments Act, 1881 the law presumes, until the contrary is proved, matters such as consideration, the date of the instrument, and that the holder is a holder in due course; any three of these are the answer. The Act lays down certain legal presumptions that apply automatically to every negotiable instrument unless the opposite is proved by the party disputing it. Three important presumptions are: 1. Presumption as to consideration: every negotiable instrument is presumed to have been made, drawn, accepted or transferred for consideration (value received). 2. Presumption as to date: every instrument bearing a date is presumed to have been made or drawn on that date. 3. Presumption as to holder in due course: the holder of the instrument is presumed to be a holder in due course, i.e. one who obtained it in good faith and for value. (Other presumptions include: as to time of acceptance, as to transfer, as to stamping, and that a lost/proved instrume …