Law · Negotiable Instruments Act, 1881
Statement 1: 'Noting' involves a Notary Public making a formal minute on a dishonoured bill of exchange consisting of the date of dishonour, reasons, and charges. Statement 2: 'Protest' is a formal certificate issued by the Notary Public based on the noting, which is mandatory for foreign bills under Section 104 of the Negotiable Instruments Act, 1881. Statement 3: When a bank handles a 'Collection Bill' rather than a 'Discounted Bill,' it acts merely as an agent and does not assume credit risk. Which of the following represents the most comprehensive evaluation of these statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1None of the statements are correct according to latest guidelines.
- 2All three statements are correct, outlining the legal steps for dishonour and the distinction between roles of a bank.✓
- 3Statement 2 and 3 are correct, but Statement 1 is incorrect.
- 4Statement 1 and 3 are correct, but Statement 2 is incorrect.
Correct answer
All three statements are correct, outlining the legal steps for dishonour and the distinction between roles of a bank.
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 Law?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Negotiable Instruments Act, 1881 MCQs →Want more practice questions on Negotiable Instruments Act, 1881?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Law · Negotiable Instruments Act, 1881