Q1: 1. What is the purpose of presentment of a promissory note for sight under Section 62 of the Negotiable Instruments Act 1881?

• A) A) To notify the maker about the existence of the note
• B) B) To demand immediate payment from the maker
• C) C) To request additional time for payment
• D) D) To seek legal advice on the note

Q2: Correct Answer: A) To notify the maker about the existence of the note

• A)
• B)
• C)
• D)

Q3: 2. In which situation would presentment of a promissory note for sight be necessary according to Section 62 of the Act?

• A) A) When the note is lost or stolen
• B) B) When the maker requests it
• C) C) When the payee desires to receive payment
• D) D) When the note is dishonored

Q4: Correct Answer: C) When the payee desires to receive payment

• A)
• B)
• C)
• D)

Q5: 3. What does presentment of a promissory note for sight involve?

• A) A) Sending a legal notice to the maker
• B) B) Physically showing the note to the maker for acceptance
• C) C) Depositing the note at a bank for payment
• D) D) Notifying the authorities about the note

Q6: Correct Answer: B) Physically showing the note to the maker for acceptance

• A)
• B)
• C)
• D)

Q7: 4. When should presentment of a promissory note for sight be made according to the Act?

• A) A) Within a reasonable time after it is drawn
• B) B) Within 10 days of the note's creation
• C) C) At the end of the financial year
• D) D) When the maker is out of the country

Q8: Correct Answer: A) Within a reasonable time after it is drawn

• A)
• B)
• C)
• D)

Q9: 5. What happens if the promissory note is not presented for sight as per Section 62?

• A) A) The note becomes invalid
• B) B) The maker is automatically liable for payment
• C) C) The payee loses the right to demand payment
• D) D) The note may be dishonored

Q10: Correct Answer: D) The note may be dishonored

• A)
• B)
• C)
• D)

Q11: 6. Who is responsible for making the presentment of a promissory note for sight?

• A) A) The maker of the note
• B) B) The payee or holder of the note
• C) C) The bank where the note was issued
• D) D) The legal representative of the maker

Q12: Correct Answer: B) The payee or holder of the note

• A)
• B)
• C)
• D)

Q13: 7. What action should the payee take if the maker refuses to accept the promissory note upon presentment?

• A) A) File a lawsuit against the maker
• B) B) Endorse the note to a third party
• C) C) Seek arbitration for resolution
• D) D) Protest the note for non-acceptance

Q14: Correct Answer: D) Protest the note for non-acceptance

• A)
• B)
• C)
• D)

Q15: 8. How does presentment of a promissory note for sight protect the rights of the payee?

• A) A) By ensuring immediate payment
• B) B) By creating a legal record of the transaction
• C) C) By preventing the maker from dishonoring the note
• D) D) By allowing the payee to negotiate the terms of payment

Q16: Correct Answer: C) By preventing the maker from dishonoring the note

• A)
• B)
• C)
• D)

Q17: 9. What documentation is usually required for the presentment of a promissory note for sight?

• A) A) A notarized copy of the note
• B) B) A valid ID of the payee
• C) C) A written demand for payment
• D) D) A signed acceptance by the maker

Q18: Correct Answer: D) A signed acceptance by the maker

• A)
• B)
• C)
• D)

Q19: 10. In a real-life scenario, why might a payee choose to present a promissory note for sight?

• A) A) To seek legal advice on the note's terms
• B) B) To confirm the authenticity of the note
• C) C) To ensure timely payment from the maker
• D) D) To transfer the note to a third party

Q20: Correct Answer: C) To ensure timely payment from the maker

• A)
• B)
• C)
• D)

Q21: 11. If a promissory note for sight is not presented within a reasonable time, what risk does the payee face?

• A) A) Losing the right to collect payment
• B) B) Being charged a penalty by the bank
• C) C) Having the note automatically renewed
• D) D) Receiving additional interest from the maker

Q22: Correct Answer: A) Losing the right to collect payment

• A)
• B)
• C)
• D)

Q23: 12. How does the process of presentment of a promissory note for sight differ from that of a demand promissory note?

• A) A) Sight notes do not require presentment
• B) B) Demand notes must be presented to a bank
• C) C) Sight notes must be presented to the maker
• D) D) Demand notes are automatically accepted

Q24: Correct Answer: C) Sight notes must be presented to the maker

• A)
• B)
• C)
• D)

Q25: 13. What legal recourse does the payee have if the maker refuses to make payment upon presentment of the note?

• A) A) Filing a criminal complaint against the maker
• B) B) Seeking a court order for immediate payment
• C) C) Initiating arbitration proceedings
• D) D) Endorsing the note to a third party for payment

Q26: Correct Answer: B) Seeking a court order for immediate payment

• A)
• B)
• C)
• D)

Q27: 14. How does the concept of presentment of a promissory note for sight contribute to the smooth functioning of commercial transactions?

• A) A) By reducing the risk of fraud
• B) B) By eliminating the need for payment
• C) C) By transferring the liability to the bank
• D) D) By increasing the interest rate on the note

Q28: Correct Answer: A) By reducing the risk of fraud

• A)
• B)
• C)
• D)

Q29: 15. What happens if the maker of a promissory note for sight is unable to make immediate payment upon presentment?

• A) A) The note becomes void
• B) B) The payee can renegotiate the terms
• C) C) The note is dishonored
• D) D) The bank covers the payment

Q30: Correct Answer: C) The note is dishonored

• A)
• B)
• C)
• D)

Q31: 16. In a real-life scenario, what steps should a payee take before presenting a promissory note for sight to the maker?

• A) A) Notify the maker in writing of the presentment
• B) B) Verify the maker's creditworthiness
• C) C) Endorse the note to a third party
• D) D) Seek legal advice on the note's terms

Q32: Correct Answer: B) Verify the maker's creditworthiness

• A)
• B)
• C)
• D)

Q33: 17. How does presentment of a promissory note for sight impact the maker's obligation to pay?

• A) A) It accelerates the payment due date
• B) B) It extends the payment due date
• C) C) It transfers the payment obligation to the bank
• D) D) It invalidates the note

Q34: Correct Answer: A) It accelerates the payment due date

• A)
• B)
• C)
• D)

Q35: 18. What role does the bank play in the presentment of a promissory note for sight?

• A) A) The bank guarantees payment to the payee
• B) B) The bank collects a fee for the service
• C) C) The bank verifies the authenticity of the note
• D) D) The bank acts as an intermediary between the parties

Q36: Correct Answer: D) The bank acts as an intermediary between the parties

• A)
• B)
• C)
• D)

Q37: 19. If a promissory note for sight is presented to the maker but not accepted, what action should the payee take next?

• A) A) Endorse the note to a third party
• B) B) Protest the note for non-acceptance
• C) C) Tear up the note and request a new one
• D) D) File a police report against the maker

Q38: Correct Answer: B) Protest the note for non-acceptance

• A)
• B)
• C)
• D)

Q39: 20. How does the concept of presentment of a promissory note for sight align with the principles of negotiability?

• A) A) It restricts the transferability of the note
• B) B) It ensures transparency in payment transactions
• C) C) It limits the maker's liability for payment
• D) D) It enhances the marketability of the note

Q40: Correct Answer: D) It enhances the marketability of the note

• A)
• B)
• C)
• D)

Q41: 21. What happens if the maker of a promissory note for sight denies ever receiving the presentment?

• A) A) The payee loses the right to collect payment
• B) B) The burden of proof shifts to the maker
• C) C) The note is automatically renewed for another term
• D) D) The bank takes over the payment obligation

Q42: Correct Answer: B) The burden of proof shifts to the maker

• A)
• B)
• C)
• D)

Q43: 22. How does the process of presentment of a promissory note for sight protect the maker's interests?

• A) A) By allowing the maker to delay payment indefinitely
• B) B) By providing a record of the payee's actions
• C) C) By transferring the liability to the bank
• D) D) By exempting the maker from payment

Q44: Correct Answer: B) By providing a record of the payee's actions

• A)
• B)
• C)
• D)

Q45: 23. If a promissory note for sight is presented to the maker but payment is refused, what recourse does the payee have under the Act?

• A) A) Endorsing the note to a third party for payment
• B) B) Seeking legal action against the maker for non-payment
• C) C) Receiving compensation from the bank
• D) D) Cancelling the note and issuing a new one

Q46: Correct Answer: B) Seeking legal action against the maker for non-payment

• A)
• B)
• C)
• D)

Q47: 24. In a real-life scenario, what factors might influence the timing of presentment of a promissory note for sight?

• A) A) The payee's personal schedule
• B) B) The maker's financial stability
• C) C) The availability of witnesses
• D) D) The weather conditions in the area

Q48: Correct Answer: B) The maker's financial stability

• A)
• B)
• C)
• D)

Q49: 25. How does the concept of presentment of a promissory note for sight contribute to the efficiency of commercial transactions?

• A) A) By delaying payment obligations
• B) B) By increasing the risk of default
• C) C) By ensuring prompt payment to the payee
• D) D) By reducing the negotiability of the note

Q50: Correct Answer: C) By ensuring prompt payment to the payee

• A)
• B)
• C)
• D)

Q51: 1. What does Section 62 of the Negotiable Instruments Act 1881 deal with?

• A) A) Endorsement of promissory notes
• B) B) Presentment of promissory note for sight
• C) C) Discharge of promissory notes
• D) D) Liability of parties to promissory notes

Q52: 2. In which situation is presentment for sight of a promissory note required?

• A) A) When the payee is unavailable
• B) B) When the payee demands immediate payment
• C) C) When the promissory note is payable on demand
• D) D) When the promissory note is payable at a future date

Q53: 3. What is the purpose of presentment for sight of a promissory note?

• A) A) To notify the payer of the upcoming payment
• B) B) To request endorsement from the payer
• C) C) To demand immediate payment from the payer
• D) D) To give the payer an opportunity to inspect the note

Q54: 4. Who is responsible for making the presentment for sight of a promissory note?

• A) A) The payee
• B) B) The endorser
• C) C) The drawer
• D) D) The holder of the note

Q55: 5. What happens if a promissory note payable on demand is not presented for sight?

• A) A) The note becomes invalid
• B) B) The payer is relieved of liability
• C) C) The payee loses the right to payment
• D) D) The payer can refuse payment

Q56: 6. How does presentment for sight of a promissory note protect the rights of the payee?

• A) A) Ensures timely payment
• B) B) Prevents fraud
• C) C) Establishes the authenticity of the note
• D) D) Allows for negotiation of the note

Q57: 7. In a real-life scenario, if a payee fails to present a promissory note for sight, what legal recourse does the payer have?

• A) A) Refuse payment
• B) B) Sue for breach of contract
• C) C) Cancel the note
• D) D) Endorse the note

Q58: 8. When should presentment for sight of a promissory note be made according to Section 62 of the Negotiable Instruments Act 1881?

• A) A) Within a reasonable time after creation
• B) B) At the convenience of the payee
• C) C) Only upon request of the payer
• D) D) At the discretion of the bank

Q59: 9. What happens if a promissory note is not presented for sight within a reasonable time?

• A) A) The note is considered dishonored
• B) B) The payee is entitled to double the amount
• C) C) The payer is required to pay interest
• D) D) The note becomes non-negotiable

Q60: 10. Who can demand presentment for sight of a promissory note according to Section 62?

• A) A) The drawer
• B) B) The holder
• C) C) The endorser
• D) D) The bank

Q61: 11. In a real-life problem, if a promissory note is presented for sight but the payer refuses payment, what legal action can the payee take?

• A) A) Cancel the note
• B) B) Endorse the note
• C) C) File a lawsuit for non-payment
• D) D) Transfer the note to a third party

Q62: 12. How does the provision of presentment for sight of a promissory note protect the interests of the payer?

• A) A) Prevents fraud
• B) B) Ensures immediate payment
• C) C) Allows for negotiation of terms
• D) D) Establishes the authenticity of the note

Q63: 13. What is the consequence if a promissory note payable on demand is not presented for sight?

• A) A) The note becomes void
• B) B) The payee loses the right to payment
• C) C) The payer can refuse payment
• D) D) The note becomes non-negotiable

Q64: 14. Who is primarily responsible for ensuring the presentment for sight of a promissory note?

• A) A) The drawer
• B) B) The bank
• C) C) The payee
• D) D) The endorser

Q65: 15. In a real-life scenario, if a promissory note for sight is lost before presentment, what steps should the payee take?

• A) A) Request a duplicate note from the payer
• B) B) Notify the bank immediately
• C) C) File a police report
• D) D) Cancel the note and issue a new one

Q66: 16. What does presentment for sight of a promissory note ensure in terms of payment?

• A) A) Immediate payment
• B) B) Timely payment
• C) C) Payment in installments
• D) D) Deferred payment

Q67: 17. How does the Negotiable Instruments Act 1881 define the timeframe for presentment for sight of a promissory note?

• A) A) Within 24 hours of creation
• B) B) Within 3 business days
• C) C) Within a reasonable time after creation
• D) D) Within 7 calendar days

Q68: 18. What rights does the payer have if a promissory note is not presented for sight as per Section 62?

• A) A) Refuse payment
• B) B) Endorse the note
• C) C) Claim damages from the payee
• D) D) Cancel the note

Q69: 19. In a real-life problem, if a promissory note for sight is presented at the bank but the payer's account has insufficient funds, what action can the payee take?

• A) A) Cancel the note
• B) B) Hold the bank liable
• C) C) Re-present the note for payment
• D) D) File a lawsuit against the payer

Q70: 20. What is the significance of presentment for sight of a promissory note in terms of legal validity?

• A) A) Establishes the date of creation
• B) B) Validates the signature of the drawer
• C) C) Confirms the authenticity of the note
• D) D) Ensures compliance with tax regulations

Q71: 21. When should presentment for sight of a promissory note be made if it is payable at a future date?

• A) A) Immediately upon creation
• B) B) Within 3 business days of maturity
• C) C) At least on the day of maturity
• D) D) Within a reasonable time after creation

Q72: 22. How does presentment for sight of a promissory note protect the payer in case of disputes?

• A) A) Prevents unauthorized negotiation
• B) B) Ensures prompt payment
• C) C) Allows for cancellation of the note
• D) D) Establishes the payee's identity

Q73: 23. In a real-life scenario, if the payee presents a promissory note for sight but the payer disputes the amount, what should the payee do?

• A) A) Accept the revised amount
• B) B) Negotiate with the bank
• C) C) Seek legal advice
• D) D) Cancel the note

Q74: 24. What legal action can the payer take if a promissory note is not presented for sight within a reasonable time?

• A) A) Refuse payment
• B) B) Endorse the note
• C) C) Request a duplicate note
• D) D) File a complaint with the bank

Q75: 25. How does presentment for sight of a promissory note impact the negotiability of the instrument?

• A) A) Enhances the negotiability
• B) B) Reduces the negotiability
• C) C) Invalidates the negotiability
• D) D) Has no effect on negotiability