Economics · Negotiable Instruments Act
A company issues a post-dated cheque to a supplier as advance payment for goods. The supplier presents the cheque to the bank two days before the date written on it. What is the bank's legal obligation under the Negotiable Instruments Act, 1881?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The bank must honour the cheque immediately as it is a valid instrument.
- 2The bank can honour the cheque but will charge an early payment penalty.
- 3The bank must dishonour the cheque and can only pay it on or after the date written on it.✓
- 4The bank should seek clarification from the company before making the payment.
Correct answer
The bank must dishonour the cheque and can only pay it on or after the date written on it.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Negotiable Instruments Act MCQs →Want more practice questions on Negotiable Instruments Act?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Negotiable Instruments Act