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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…

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Which of the following presumptions is prescribed under section 118 of the Negotiable Instruments Act, 1881?

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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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