In the light of the Negotiable Instruments Act, 1881, at what rate interest will be charged if the rate…
Under Section 80 of the Negotiable Instruments Act, 1881, where no rate of interest is specified in the instrument, interest is calculated at "18 percent per annum" from the…
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In the light of the Negotiable Instruments Act, 1881, at what rate interest will be charged if the rate of interest is not mentioned on the negotiable instruments?
Answer and explanation
Correct answer C
Under Section 80 of the Negotiable Instruments Act, 1881, where no rate of interest is specified in the instrument, interest is calculated at "18 percent per annum" from the date the amount ought to have been paid until tender or realisation, notwithstanding any agreement between the parties.
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