Business Studies · Negotiable Instruments Act - Discharge
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: Under the legal modes of discharge by operation of law, a negotiable instrument is discharged by 'merger' specifically when the holder renounces their rights against the party primarily liable. Reason R: A discharge by merger occurs when the rights of the holder and the party primarily liable merge in the same person, whereas renunciation is a separate mode where the holder renounces their rights. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A is not correct but R is correct.✓
- 2A is correct but R is not correct.
- 3Both A and R are correct but R is NOT the correct explanation of A.
- 4Both A and R are correct and R is the correct explanation of A.
Correct answer
A is not correct but R is correct.
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 Business Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Negotiable Instruments Act - Discharge MCQs →Want more practice questions on Negotiable Instruments Act - Discharge?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Business Studies · Negotiable Instruments Act - Discharge