Under section 11 of the Negotiable Instruments Act, 1881, what is the territorial classification of a…
Section 11 classifies the instrument as inland. It must be drawn or made in India and must either be payable in India or be drawn on someone resident in India.
Choose your answer
Under section 11 of the Negotiable Instruments Act, 1881, what is the territorial classification of a promissory note, bill of exchange or cheque drawn or made in India and either payable in India or drawn on a person resident in India?
Answer and explanation
Correct answer A
Section 11 classifies the instrument as inland. It must be drawn or made in India and must either be payable in India or be drawn on someone resident in India.
Option feedback
Option A
The combination of Indian origin and either specified Indian connection satisfies section 11.
Option B
Section 12 uses the foreign classification for an instrument outside the conditions in section 11.
Option C
Negotiability is a different classification. Section 13 separately defines a negotiable instrument.
Option D
Section 15 concerns signing an instrument for negotiation. That act does not classify the instrument by territory.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
Chhattisgarh Judicial Services
-
CUET PG Law (LL.M.)
Subject revision