Site navigation

Under the Negotiable Instruments Act, 1881, if the holder and the notified party are in different places:

Section 106 provides that where the parties live or carry on business in different places, notice is given within a reasonable time "if it is despatched by the next post or…

Choose your answer

Under the Negotiable Instruments Act, 1881, if the holder and the notified party are in different places:

Select one answer
Answer and explanation

Correct answer B

Section 106 provides that where the parties live or carry on business in different places, notice is given within a reasonable time "if it is despatched by the next post or on the day next after the day of dishonour". No week or forty-eight-hour allowance exists, and same-day receipt is not required.

Practice for these exams

Related exam syllabi

Related questions in this topic