Under section 14 of the Negotiable Instruments Act, 1881, what is negotiation?
Negotiation occurs when the transfer of the specified instrument makes the transferee its holder. Mere payment or bargaining does not supply that definition.
Choose your answer
Under section 14 of the Negotiable Instruments Act, 1881, what is negotiation?
Answer and explanation
Correct answer A
Negotiation occurs when the transfer of the specified instrument makes the transferee its holder. Mere payment or bargaining does not supply that definition.
Option feedback
Option A
This is the definition in section 14.
Option B
Payment by a bank is not the section 14 definition of negotiation.
Option C
Ordinary bargaining is not the statutory meaning.
Option D
The transfer-to-holder definition is correct.
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