Q1: 1. Who is eligible to negotiate a negotiable instrument according to Section 51 of the Negotiable Instruments Act 1881?

• A) A) Only the original payee
• B) B) Any person in possession of the instrument with the endorsement of the payee
• C) C) Only the bank
• D) D) Only the drawer

Q2: 2. A real-life problem scenario: If a person finds a lost check made out to someone else and the payee endorses it to them, are they allowed to negotiate the instrument according to Section 51?

• A) A) Yes, because they have possession and endorsement
• B) B) No, only the original payee can negotiate the instrument
• C) C) Yes, but only after informing the bank
• D) D) No, only the bank can negotiate the instrument

Q3: 3. According to Section 51 of the Negotiable Instruments Act 1881, who has the legal right to negotiate a promissory note?

• A) A) Only the issuer of the note
• B) B) Any person in possession of the note with the endorsement of the payee
• C) C) Only the payee
• D) D) Only the bank

Q4: 4. In a business transaction, if a company transfers a bill of exchange to a creditor who then endorses it to a third party, who can legally negotiate the instrument based on Section 51?

• A) A) Only the company
• B) B) The creditor who received it initially
• C) C) The third party with the endorsement
• D) D) Only the bank

Q5: 5. A practical situation: If a seller transfers a promissory note to a buyer as payment for goods, can the buyer negotiate the note according to Section 51?

• A) A) Yes, because the buyer now possesses the note
• B) B) No, only the seller can negotiate the note
• C) C) Yes, but only after informing the bank
• D) D) No, only the bank can negotiate the note