Law · Negotiable Instruments Act, 1881
Under Section 118 of the Negotiable Instruments Act, 1881, what is the initial legal presumption regarding consideration for every negotiable instrument?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Presumption of consideration only applies to inland bills, not accommodation bills.
- 2Consideration must be explicitly written on the face of the instrument to be valid.
- 3It is presumed that every negotiable instrument was made or drawn for consideration.✓
- 4It is presumed that there was no consideration until proven otherwise.
Correct answer
It is presumed that every negotiable instrument was made or drawn for consideration.
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