Under Section 39 of the Negotiable Instruments Act, 1881, where the holder of an accepted bill enters…
Under s.39 NI Act, if the holder expressly reserves his rights when contracting with the acceptor, the other parties are not discharged and remain liable, rather than the…
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Under Section 39 of the Negotiable Instruments Act, 1881, where the holder of an accepted bill enters into a contract with the acceptor which would discharge the other parties, if the holder expressly reserves his rights:
Answer and explanation
Correct answer A
Under s.39 NI Act, if the holder expressly reserves his rights when contracting with the acceptor, the other parties are not discharged and remain liable, rather than the instrument becoming invalid or the bank becoming liable.
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