Q1: 1. In the context of negotiable instruments, delivery refers to

• A) A) Transfer of possession
• B) B) Transfer of ownership
• C) C) Transfer of title
• D) D) Transfer of money

Q2: 2. Which of the following is NOT a requirement for valid delivery of a negotiable instrument?

• A) A) Intention to transfer ownership
• B) B) Actual physical delivery
• C) C) Endorsement by a third party
• D) D) Consent of the parties involved

Q3: 3. A negotiable instrument is deemed delivered when it is

• A) A) Accepted by the payee
• B) B) Handed over to the payee or bearer
• C) C) Endorsed by the drawer
• D) D) Stamped by a notary public

Q4: 4. Which of the following statements about delivery of a negotiable instrument is true?

• A) A) Delivery must always be in writing
• B) B) Delivery must be unconditional
• C) C) Delivery is not required for a promissory note
• D) D) Delivery can only be made by a bank

Q5: 5. In a real-life scenario, if a cheque is handed over to the payee but not accepted, it does not constitute valid

• A) A) Payment
• B) B) Delivery
• C) C) Endorsement
• D) D) Negotiation

Q6: 6. An example of valid delivery of a negotiable instrument is when

• A) A) A cheque is mailed to the payee's address
• B) B) A promissory note is kept by the drawer
• C) C) A bill of exchange is lost in transit
• D) D) A bearer cheque is left unsigned

Q7: 7. If a promissory note is delivered to a third party for safekeeping, the delivery is considered

• A) A) Invalid
• B) B) Conditional
• C) C) Irrevocable
• D) D) Partial

Q8: 8. When it comes to delivery of negotiable instruments, the key factor is

• A) A) Payment amount
• B) B) Signature of the drawer
• C) C) Intention of the parties
• D) D) Stamp duty

Q9: 9. Which of the following is NOT a valid method of delivery for a negotiable instrument?

• A) A) Handing over the instrument
• B) B) Mailing the instrument
• C) C) Emailing a scanned copy
• D) D) Depositing the instrument in a bank

Q10: 10. In a scenario where a cheque is issued but never physically handed over to the payee, the delivery is

• A) A) Valid
• B) B) Conditional
• C) C) Incomplete
• D) D) Irrelevant

Q11: 11. A bill of exchange is considered delivered when

• A) A) The drawer signs it
• B) B) The acceptor stamps it
• C) C) The payee receives it
• D) D) The bank endorses it

Q12: 12. If a cheque is delivered to the wrong recipient by mistake, the delivery is

• A) A) Valid
• B) B) Void
• C) C) Irrevocable
• D) D) Conditional

Q13: 13. The concept of delivery in negotiable instruments ensures

• A) A) Security of transactions
• B) B) Enforceability of contracts
• C) C) Privacy of financial information
• D) D) Exclusivity of ownership

Q14: 14. A promissory note is considered delivered when

• A) A) It is signed by the maker
• B) B) It is notarized by a legal authority
• C) C) It is endorsed by a third party
• D) D) It is handed over to the payee

Q15: 15. Delivery of a negotiable instrument signifies

• A) A) Completion of the transaction
• B) B) Legal ownership transfer
• C) C) Immediate payment obligation
• D) D) Future financial commitment

Q16: 16. In a case where a cheque is stolen before delivery to the payee, the delivery is

• A) A) Valid
• B) B) Invalid
• C) C) Irrevocable
• D) D) Conditional

Q17: 17. The purpose of requiring delivery in negotiable instruments is to

• A) A) Ensure the instrument is genuine
• B) B) Prevent fraud and unauthorized transfers
• C) C) Simplify documentation processes
• D) D) Expedite legal proceedings

Q18: 18. Delivery of a negotiable instrument must be

• A) A) Voluntary
• B) B) Public
• C) C) Recorded in a notary journal
• D) D) Approved by a court

Q19: 19. If a cheque is placed in a mailbox for the payee to collect, the delivery is

• A) A) Valid
• B) B) Conditional
• C) C) Revocable
• D) D) Unilateral

Q20: 20. When a promissory note is physically handed over to the payee, the delivery is

• A) A) Complete
• B) B) Partial
• C) C) Conditional
• D) D) Temporary

Q21: 21. In a situation where a bill of exchange is delivered electronically, the method of delivery is

• A) A) Secure
• B) B) Untraceable
• C) C) Impractical
• D) D) Unlawful

Q22: 22. Delivery of a negotiable instrument creates a legal relationship between

• A) A) Drawer and drawee
• B) B) Maker and payee
• C) C) Endorser and endorsee
• D) D) Holder and holder in due course

Q23: 23. If a cheque is delivered to the bank for deposit on behalf of the payee, the delivery is

• A) A) Valid
• B) B) Conditional
• C) C) Indirect
• D) D) Unauthorized

Q24: 24. The timing of delivery in negotiable instruments is crucial to

• A) A) Avoid stamp duty
• B) B) Establish priority of rights
• C) C) Extend the maturity date
• D) D) Reduce interest rates

Q25: 25. Delivery of a negotiable instrument is essential for

• A) A) Creating a contract
• B) B) Enforcing a contract
• C) C) Terminating a contract
• D) D) Modifying a contract