Q1: 1. In the context of Section 60 of the Negotiable Instruments Act 1881, when is a negotiable instrument considered negotiable till payment or satisfaction?

• A) A) Until the date of maturity
• B) B) Until dishonor by non-acceptance
• C) C) Until full payment or satisfaction by the acceptor
• D) D) Until the payee's death

Q2: 2. A negotiable instrument remains negotiable until

• A) A) The drawer revokes it
• B) B) The payee transfers it to a third party
• C) C) The payee receives partial payment
• D) D) Full payment or satisfaction is made by the acceptor

Q3: 3. Which of the following actions does not affect the negotiability of an instrument under Section 60?

• A) A) Alteration of the date of payment
• B) B) Partial payment by the acceptor
• C) C) Transfer to a third party
• D) D) Full satisfaction by the acceptor

Q4: 4. John issued a negotiable instrument to Sarah. Sarah partially paid the amount to John. Is the instrument still negotiable according to Section 60?

• A) A) Yes, it remains negotiable until full payment or satisfaction
• B) B) No, partial payment renders the instrument non-negotiable
• C) C) It depends on the date of maturity of the instrument
• D) D) Only if the instrument is transferred to a third party

Q5: 5. Under Section 60, what happens to the negotiability of an instrument if the acceptor defaults on payment?

• A) A) The instrument becomes non-negotiable immediately
• B) B) The negotiability remains until the payee demands full payment
• C) C) The negotiability is extended until the date of maturity
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q6: 6. Which of the following scenarios would affect the negotiability of an instrument as per Section 60?

• A) A) Endorsement by the holder
• B) B) Acceptance by the drawee
• C) C) Alteration of the amount payable
• D) D) Extension of the payment deadline

Q7: 7. If a negotiable instrument is transferred to a new holder, does it remain negotiable under Section 60?

• A) A) Yes, as long as the new holder is aware of the terms
• B) B) No, unless the new holder reissues the instrument
• C) C) Yes, until full payment or satisfaction by the acceptor
• D) D) No, if the original payee is deceased

Q8: 8. Which of the following statements best describes the negotiability of an instrument under Section 60?

• A) A) The negotiability is terminated upon acceptance by the drawee
• B) B) The negotiability remains until full payment or satisfaction by the acceptor
• C) C) The negotiability extends indefinitely until revoked by the drawer
• D) D) The negotiability ceases upon endorsement by the holder

Q9: 9. Maria received a negotiable instrument from David. If Maria receives only a partial payment on the instrument, what is the status of negotiability under Section 60?

• A) A) The instrument becomes non-negotiable
• B) B) Negotiability remains until the date of maturity
• C) C) The instrument remains negotiable until full payment or satisfaction
• D) D) Negotiability is transferred to the drawer

Q10: 10. Under Section 60, what action by the acceptor would render a negotiable instrument non-negotiable?

• A) A) Endorsing the instrument to a third party
• B) B) Transferring the instrument to the drawer
• C) C) Partial payment to the holder
• D) D) Full payment or satisfaction to the holder

Q11: 11. Sarah holds a negotiable instrument that is due for payment. If the acceptor fails to make full payment, how does it impact the negotiability of the instrument according to Section 60?

• A) A) The instrument remains negotiable until the date of maturity
• B) B) The negotiability is extended until the acceptor's next payment
• C) C) The instrument becomes non-negotiable immediately
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q12: 12. In a scenario where the drawer of a negotiable instrument demands early payment, how does it affect the negotiability under Section 60?

• A) A) The negotiability ceases upon the drawer's demand
• B) B) The negotiability remains until the date of maturity
• C) C) The negotiability extends until the acceptance by the drawee
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q13: 13. If a negotiable instrument is lost and a duplicate is issued, does the negotiability under Section 60 transfer to the duplicate instrument?

• A) A) Yes, the negotiability remains with the duplicate instrument
• B) B) No, negotiability is lost with the original instrument
• C) C) Only if the original instrument is revoked
• D) D) Only if the duplicate instrument is endorsed by the holder

Q14: 14. Under Section 60, what is the impact on the negotiability of an instrument if the payee endorses it to a third party?

• A) A) The negotiability remains with the new holder
• B) B) The instrument becomes non-negotiable
• C) C) The negotiability is extended until the date of maturity
• D) D) The instrument is transferred back to the drawer

Q15: 15. If a negotiable instrument is paid off by the acceptor before the due date, what happens to its negotiability under Section 60?

• A) A) The instrument becomes non-negotiable immediately
• B) B) The negotiability remains until the date of maturity
• C) C) The instrument can be reissued as a new negotiable instrument
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q16: 16. When a negotiable instrument is dishonored by the acceptor, how does it affect the negotiability under Section 60?

• A) A) The instrument becomes non-negotiable immediately
• B) B) The negotiability remains until the date of maturity
• C) C) The negotiability is transferred to the drawer
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q17: 17. If a negotiable instrument is altered after issuance, what impact does it have on its negotiability under Section 60?

• A) A) The negotiability is lost
• B) B) The negotiability remains until the date of maturity
• C) C) The negotiability is extended until the next payment
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q18: 18. In the context of Section 60, what happens to the negotiability of an instrument if the drawer cancels it before maturity?

• A) A) The instrument becomes non-negotiable immediately
• B) B) The negotiability remains with the original holder
• C) C) The negotiability is extended until the acceptance by the drawee
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q19: 19. If a negotiable instrument is transferred to a holder in due course, how does it affect the negotiability under Section 60?

• A) A) The negotiability is lost upon transfer
• B) B) The negotiability remains with the new holder
• C) C) The instrument becomes non-negotiable
• D) D) The negotiability remains until the date of maturity

Q20: 20. When a negotiable instrument is paid off by a third party on behalf of the acceptor, what is the impact on its negotiability according to Section 60?

• A) A) The negotiability remains until the date of maturity
• B) B) The instrument becomes non-negotiable immediately
• C) C) The negotiability extends to the third party
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q21: 21. If a negotiable instrument is transferred to a minor, how does it affect the negotiability under Section 60?

• A) A) The instrument becomes non-negotiable
• B) B) The negotiability remains with the minor until adulthood
• C) C) The negotiability is lost upon transfer
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q22: 22. In a scenario where a negotiable instrument is destroyed, what happens to its negotiability under Section 60?

• A) A) The negotiability is lost
• B) B) The negotiability remains until the date of maturity
• C) C) The negotiability is transferred to the drawer
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q23: 23. If a negotiable instrument is transferred to an illiterate person, how does it affect the negotiability under Section 60?

• A) A) The negotiability remains until the date of maturity
• B) B) The negotiability is lost upon transfer
• C) C) The instrument becomes non-negotiable
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q24: 24. When a negotiable instrument is stolen and used for payment, what is the impact on its negotiability under Section 60?

• A) A) The negotiability remains until the date of maturity
• B) B) The instrument becomes non-negotiable immediately
• C) C) The negotiability is transferred to the thief
• D) D) The negotiability remains until full payment or satisfaction by the acceptor

Q25: 25. In a situation where a negotiable instrument is lost and later found, what happens to its negotiability under Section 60?

• A) A) The negotiability is lost
• B) B) The negotiability remains until the date of maturity
• C) C) The negotiability is retained by the original holder
• D) D) The negotiability remains until full payment or satisfaction by the acceptor