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Under section 97 of the Negotiable Instruments Act, 1881, a notice of dishonour is sent to a party who…

Section 97 treats an otherwise proper notice of dishonour as sufficient if the sender did not know of the addressee’s death when sending it.

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Under section 97 of the Negotiable Instruments Act, 1881, a notice of dishonour is sent to a party who has died. The sender is unaware of the death when sending it. What is the effect of the death on an otherwise proper notice?

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Answer and explanation

Correct answer B

Section 97 treats an otherwise proper notice of dishonour as sufficient if the sender did not know of the addressee’s death when sending it.

Option feedback

Option A

Section 97 preserves sufficiency when the sender was unaware of the death.

Option B

Section 97 treats the notice as sufficient on these facts.

Option C

Section 94 permits notice to a legal representative, but section 97 preserves the notice already sent in ignorance of death.

Option D

Section 97 makes sufficiency turn on the sender’s lack of knowledge, without requiring later approval.

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