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Which presumption is outside the list in section 118 of the Negotiable Instruments Act, 1881?

Section 118 lists rebuttable presumptions about consideration, time of acceptance and order of endorsements. The presumption about a holder receiving a cheque in discharge…

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Which presumption is outside the list in section 118 of the Negotiable Instruments Act, 1881?

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Answer and explanation

Correct answer A

Section 118 lists rebuttable presumptions about consideration, time of acceptance and order of endorsements.

The presumption about a holder receiving a cheque in discharge of a debt or liability comes from section 139.

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Option A

Section 139 specifically presumes that the holder received the cheque in discharge, in whole or in part, of a debt or other liability unless the contrary is proved.

Option B

Section 118(a) lists the presumption of consideration.

Option C

Section 118(c) lists the presumption about when an accepted bill of exchange was accepted.

Option D

Section 118(e) lists the presumption about the order of endorsements.

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