Which of the following presumptions is prescribed under section 118 of the Negotiable Instruments Act,…
Section 118(a) presumes consideration; clause (b) presumes that a dated instrument was made or drawn on its stated date; and clause (c) presumes that an accepted bill was…
Choose your answer
Which of the following presumptions is prescribed under section 118 of the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer D
Section 118(a) presumes consideration; clause (b) presumes that a dated instrument was made or drawn on its stated date; and clause (c) presumes that an accepted bill was accepted within a reasonable time after its date and before maturity. All three listed subjects are therefore covered. These are rebuttable presumptions, because section 118 operates until the contrary is proved.
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