Under section 80 of the Negotiable Instruments Act, 1881, what annual interest rate applies to the…
Section 80 specifies 18% per annum when a negotiable instrument does not state an interest rate. Section 79 deals separately with an instrument that expressly specifies a…
Choose your answer
Under section 80 of the Negotiable Instruments Act, 1881, what annual interest rate applies to the amount due on an instrument that specifies no rate?
Answer and explanation
Correct answer D
Section 80 specifies 18% per annum when a negotiable instrument does not state an interest rate. Section 79 deals separately with an instrument that expressly specifies a rate.
Option feedback
Option A
A missing rate does not eliminate interest. Section 80 supplies a statutory rate.
Option B
Section 80 sets the rate at 18% per annum.
Option C
Section 80 sets the rate at 18% per annum.
Option D
Section 80 specifies 18% per annum when the instrument gives no rate.
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