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________ are the important presumptions in favour of negotiable instruments to facilitate proof of claims arising upon them.

Question and options

________ are the important presumptions in favour of negotiable instruments to facilitate proof of claims arising upon them.
  1. Presumption as to consideration, the presumptions as to the time of acceptance, transfer, as to stamp, holder in due course, order of indorsement and date
  2. Presumption as to drawee, the presumptions as to the time of acceptance, balance, exchange, transfer and presumptions as to settlement, holder in due course, order of indorsement and date
  3. Presumption as to consideration, the presumption as to order of indorsement and date
  4. Presumption as to holder in due course, order of indorsement and date

Answer and explanation

Correct answer: A - Presumption as to consideration, the presumptions as to the time of acceptance, transfer, as to stamp, holder in due course, order of indorsement and date
Section 118 NI Act raises presumptions as to consideration, date, time of acceptance, time of transfer, order of indorsements, stamps, and that the holder is a holder in due course. The option listing consideration, time of acceptance, transfer, stamp, holder in due course, order of indorsement and date is the complete list.

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