Commercial Law and Preliminaries of Auditing · Class 12 Commerce
Ch 5Negotiable Instruments — Class 12 Commercial Law and Preliminaries of Auditing, concept-first.
Negotiable Instruments is the largest single unit in the Semester IV (Class XII) paper, carrying 14 of the 40 marks on Part A (Commercial Law). Unlike Semester III, Semester IV is a Short Answer Question (SAQ) + Descriptive paper — this unit is examined as 2-mark SAQs (×2) and 5-mark Descriptive questions (×2), never a…
Key concepts
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Negotiable Instruments — Concept, Features, and Types
A negotiable instrument (Section 13: a promissory note, bill of exchange, or cheque) is defined less by a positive definition than by one decisive FEATURE: it can be transferred so freely that a good-faith transferee for…
Most relevant Q&A
- Define a Promissory Note. State any two of its essential elements.Free
- State any two points of difference between a Bill of Exchange and a Cheque.Preview
- Discuss the essential features of a Negotiable Instrument. What makes an instrument truly 'negotiable' as opposed to merely 'transferable'?Free
- Why is a promissory note said to have only two parties, while a bill of exchange has three? Name them in each case.Preview
- M draws a bill of exchange on N for ₹30,000, payable to M's own order, three months after date. N accepts the bill unconditionally. M then e…Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Overview
Negotiable Instruments is the largest single unit in the Semester IV (Class XII) paper, carrying 14 of the 40 marks on Part A (Commercial Law).
Introduction — Negotiable Instruments, Promissory Note, Bill of Exchange, Cheque
Concept of a Negotiable Instrument. The Negotiable Instruments Act, 1881 does not itself define "negotiable instrument" in positive terms — Section 13 instead lists what qualifies: a promissory note,…
Acceptance, Negotiation, and Endorsement
Acceptance — meaning, types, when not necessary, time and place of presentment. Section 7 defines the acceptor as the drawee (or any other person) who signs the bill and thereby agrees to the drawer's…
More questions
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- Q1Define a Promissory Note. State any two of its essential elements.Free
- Q2Who is a 'Holder' of a negotiable instrument, as defined under the Negotiable Instruments Act, 1881?Free
- Q3State any two points of difference between a Bill of Exchange and a Cheque.Preview
- Q4What is meant by 'negotiation by mere delivery'? Give an example.Preview
- Q5Distinguish between a Blank Endorsement and a Full Endorsement.Preview
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- Q8A draws a cheque for ₹20,000 in favour of B. B endorses it in blank and hands it to C. C then writes 'Pay D only' above B's signature and de…Free
- Q9P, a wholesaler, sells goods on credit to Q, and Q accepts a bill of exchange drawn on him by P for ₹50,000, payable three months hence. Bef…Preview
- Q14M draws a bill of exchange on N for ₹30,000, payable to M's own order, three months after date. N accepts the bill unconditionally. M then e…Preview
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- Q10Explain the meaning of 'Qualified Acceptance' of a Bill of Exchange. What is the effect of a holder taking a qualified acceptance?Free
- Q11State the two modes of negotiation recognised under the Negotiable Instruments Act, 1881, with the type of instrument each applies to.Free
- Q12Explain any three types of endorsement recognised under the Negotiable Instruments Act, 1881.Preview
- Q13Why is a promissory note said to have only two parties, while a bill of exchange has three? Name them in each case.Preview