Q1: 1. What is the time period within which a foreign instrument must be presented for payment as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Within 10 days
• B) B) Within 15 days
• C) C) Within 21 days
• D) D) Within 30 days

Q2: 2. In case a foreign instrument is dishonored, the holder must give notice of dishonor to which party under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Payee
• D) D) Endorser

Q3: 3. What is the consequence of failure to give notice of dishonor for a foreign instrument under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Holder loses all rights against the endorser
• B) B) Holder is still entitled to recover the amount
• C) C) Holder must pay a penalty fee
• D) D) Holder must forfeit the instrument

Q4: 4. When is a foreign instrument considered dishonored under Section 12 of the Negotiable Instruments Act 1881?

• A) A) When it is not presented within the specified time
• B) B) When it is not accepted by the drawee
• C) C) When it is not paid upon proper presentment
• D) D) When it is not endorsed by the payee

Q5: 5. Who is primarily liable for the payment of a foreign instrument as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Endorser
• D) D) Payee

Q6: 6. What happens if a foreign instrument is not presented for payment within the prescribed time period under Section 12 of the Negotiable Instruments Act 1881?

• A) A) It becomes invalid
• B) B) It is considered dishonored
• C) C) Holder loses the right of recourse against the drawer and endorsers
• D) D) It must be re-issued by the drawee

Q7: 7. In a real-life scenario, if a foreign bill of exchange is not presented for payment within 21 days, what rights does the holder lose?

• A) A) Right to reissue the bill
• B) B) Right to claim payment from the drawee
• C) C) Right to recover from the drawer and endorsers
• D) D) Right to seek legal action against the payee

Q8: 8. What action should the holder of a foreign instrument take upon receiving notice of dishonor as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) File a police complaint
• B) B) Issue a legal notice to the drawee
• C) C) Give notice of dishonor to the endorser
• D) D) Cancel the instrument

Q9: 9. If a foreign instrument is dishonored due to insufficient funds, who is the party primarily responsible for making the payment as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Endorser
• D) D) Payee

Q10: 10. What happens if a foreign instrument is dishonored and the holder fails to give notice of dishonor to the endorser within the prescribed time under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Endorser loses all liability
• B) B) Endorser must pay double the amount
• C) C) Endorser is still liable for payment
• D) D) Endorser can refuse to pay

Q11: 11. In a practical scenario, if a foreign cheque is presented for payment after 25 days, what consequences does the holder face under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Holder can still claim payment from the drawee
• B) B) Holder loses all rights against the endorser
• C) C) Holder must re-issue the cheque
• D) D) Holder can sue the bank

Q12: 12. Who is required to give notice of dishonor in the case of a foreign instrument under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Holder
• B) B) Drawer
• C) C) Drawee
• D) D) Endorser

Q13: 13. What action should the holder take if a foreign instrument is dishonored by non-acceptance as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Re-issue the instrument
• B) B) Give notice of dishonor to the endorser
• C) C) Seek legal advice
• D) D) File a complaint with the police

Q14: 14. If a foreign bill of exchange is not presented for payment within the specified time frame, what rights does the holder lose as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Right to demand payment from the payee
• B) B) Right to recover from the drawer and endorsers
• C) C) Right to re-issue the bill
• D) D) Right to cancel the bill

Q15: 15. In a real-life situation, if a foreign promissory note is dishonored and the holder fails to give notice of dishonor to the endorser, what legal consequences may arise under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Endorser must make immediate payment
• B) B) Endorser loses all liability
• C) C) Holder can file a lawsuit against the drawee
• D) D) Holder loses the right to recover from the endorser

Q16: 16. Who bears the primary responsibility for making payment on a foreign instrument as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Endorser
• D) D) Payee

Q17: 17. What steps should the holder take if a foreign instrument is dishonored by the drawee as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Re-issue the instrument
• B) B) Give notice of dishonor to the endorser
• C) C) Seek arbitration
• D) D) Destroy the instrument

Q18: 18. In a case where a foreign instrument is dishonored due to lack of funds, who is primarily responsible for the payment as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Endorser
• D) D) Payee

Q19: 19. If a foreign instrument is dishonored and the holder fails to give notice of dishonor to the endorser within the specified time frame, what implications does it have under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Endorser loses all liability
• B) B) Endorser must pay double the amount
• C) C) Endorser is still liable for payment
• D) D) Endorser can refuse to pay

Q20: 20. In a practical scenario, if a foreign cheque is presented for payment after the prescribed period, what consequences does the holder face as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Holder can still claim payment from the drawee
• B) B) Holder loses all rights against the endorser
• C) C) Holder must re-issue the cheque
• D) D) Holder can sue the bank

Q21: 21. Who is obligated to give notice of dishonor in the case of a foreign instrument under Section 12 of the Negotiable Instruments Act 1881?

• A) A) Holder
• B) B) Drawer
• C) C) Drawee
• D) D) Endorser

Q22: 22. What action should the holder take if a foreign instrument is dishonored by non-acceptance as per Section 12 of the Negotiable Instruments Act 1881?

• A) A) Re-issue the instrument
• B) B) Give notice of dishonor to the endorser
• C) C) Seek legal advice
• D) D) File a complaint with the police

Q23: 23. If a foreign bill of exchange is not presented for payment within the stipulated time frame, what rights does the holder lose according to Section 12 of the Negotiable Instruments Act 1881?

• A) A) Right to demand payment from the payee
• B) B) Right to recover from the drawer and endorsers
• C) C) Right to re-issue the bill
• D) D) Right to cancel the bill

Q24: 24. In a real-life situation, if a foreign promissory note is dishonored and the holder fails to give notice of dishonor to the endorser, what legal consequences may arise according to Section 12 of the Negotiable Instruments Act 1881?

• A) A) Endorser must make immediate payment
• B) B) Endorser loses all liability
• C) C) Holder can file a lawsuit against the drawee
• D) D) Holder loses the right to recover from the endorser

Q25: 25. Who is primarily responsible for making payment on a foreign instrument as stated in Section 12 of the Negotiable Instruments Act 1881?

• A) A) Drawer
• B) B) Drawee
• C) C) Endorser
• D) D) Payee