Site navigation

Section 131 of the Negotiable Instruments Act deals with:

Section 131 protects a banker who "in good faith and without negligence" receives payment for a customer of a crossed cheque, if the customer's title proves defective. The…

Choose your answer

Section 131 of the Negotiable Instruments Act deals with:

Select one answer
Answer and explanation

Correct answer A

Section 131 protects a banker who "in good faith and without negligence" receives payment for a customer of a crossed cheque, if the customer's title proves defective. The paying banker's liability is s.129, the drawer's protection is s.128, and the application of the crossing rules to drafts is s.131A.

Practice for these exams

Related exam syllabi

Related questions in this topic