Q1: 1. In the context of Section 66 of the Negotiable Instruments Act 1881, presentment for payment of an instrument payable after date or sight must be made on

• A) A) The date of maturity
• B) B) One day before the due date
• C) C) One month after the due date
• D) D) Any day within 10 days after the due date

Q2: 2. What happens if the holder of a negotiable instrument fails to make presentment for payment on the due date?

• A) A) The instrument becomes void
• B) B) The drawer is released from liability
• C) C) The holder loses all rights under the instrument
• D) D) The instrument becomes overdue

Q3: 3. A real-life scenario could be a situation where a post-dated check is presented for payment before the date mentioned on it. What should the bank do in this case?

• A) A) Honor the check
• B) B) Reject the check
• C) C) Hold the check until the date mentioned
• D) D) Call the issuer for confirmation

Q4: 4. If an instrument payable after sight is not payable on demand, the holder must present it for payment within a reasonable time after

• A) A) The date of issuance
• B) B) The date of acceptance
• C) C) The date of maturity
• D) D) The date of sight

Q5: 5. What implications does delayed presentment of an instrument payable after sight have on the rights of the holder?

• A) A) The holder cannot enforce payment
• B) B) The holder loses the right to claim interest
• C) C) The drawer is discharged from liability
• D) D) The holder loses the right to sue for damages

Q6: 6. In the case of a bill of exchange payable after sight, who is responsible for presenting the instrument for acceptance or payment?

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

Q7: 7. What is the consequence of non-presentment of an instrument payable after sight within a reasonable time?

• A) A) The instrument becomes void
• B) B) The holder loses the right to claim interest
• C) C) The drawer is discharged from liability
• D) D) The holder loses the right of recourse against prior parties

Q8: 8. A scenario where a promissory note payable after sight is presented for payment after a prolonged period could result in

• A) A) The note becoming void
• B) B) The note being deemed dishonored
• C) C) The payee losing the right to enforce payment
• D) D) The maker being released from liability

Q9: 9. If an instrument is payable after sight and the holder does not present it for payment within a reasonable time, who bears the consequences?

• A) A) The drawer
• B) B) The payee
• C) C) The maker
• D) D) The drawee

Q10: 10. In a case where a sight draft is not presented promptly for payment, which party is prejudiced as a result?

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

Q11: 11. What action should the holder of a bill payable after sight take to ensure timely payment?

• A) A) Present the bill immediately after sight
• B) B) Wait for the drawee to request payment
• C) C) Hold the bill until the maturity date
• D) D) Endorse the bill to transfer the responsibility

Q12: 12. Failure to promptly present a promissory note payable after sight might result in

• A) A) The note being dishonored
• B) B) The note becoming non-negotiable
• C) C) The note becoming payable on demand
• D) D) The note being deemed void

Q13: 13. What is the significance of presenting an instrument payable after sight within a reasonable time?

• A) A) Ensures the holder receives interest
• B) B) Prevents the instrument from becoming void
• C) C) Protects the drawer from liability
• D) D) Allows the holder to claim damages

Q14: 14. A scenario where a sight draft is not presented promptly can lead to

• A) A) The drawee being discharged from liability
• B) B) The holder losing the right to enforce payment
• C) C) The endorser becoming liable for payment
• D) D) The drawer being released from obligation

Q15: 15. What steps should the holder of an instrument payable after sight take to maintain the enforceability of the instrument?

• A) A) Endorse the instrument to another party
• B) B) Present the instrument within a reasonable time
• C) C) Hold the instrument until the due date
• D) D) Demand immediate payment from the drawer

Q16: 16. In a case where a bill of exchange payable after sight is not promptly presented for payment, the holder may

• A) A) Endorse the bill to transfer liability
• B) B) Lose the right to claim interest
• C) C) Demand payment from the drawer only
• D) D) Extend the maturity date of the bill

Q17: 17. Delayed presentment of a promissory note payable after sight may result in

• A) A) The note being deemed void
• B) B) The maker being discharged from liability
• C) C) The payee losing all rights under the note
• D) D) The note becoming payable on demand

Q18: 18. What obligation does the holder of an instrument payable after sight have in terms of presentment?

• A) A) Present the instrument on demand
• B) B) Present the instrument after the maturity date
• C) C) Present the instrument within a reasonable time
• D) D) Hold the instrument until the drawee requests payment

Q19: 19. Non-presentment of a sight draft for payment within a reasonable time can lead to

• A) A) The holder losing the right of recourse
• B) B) The drawer being discharged from liability
• C) C) The endorser becoming liable for payment
• D) D) The drawee being required to pay immediately

Q20: 20. A situation where a promissory note payable after sight is presented long after the sight could result in

• A) A) The note being dishonored
• B) B) The note becoming non-negotiable
• C) C) The payee losing the right to enforce payment
• D) D) The maker being released from liability

Q21: 21. Timely presentment of an instrument payable after sight is crucial to

• A) A) Accelerate the maturity date
• B) B) Ensure the holder receives interest
• C) C) Prevent the instrument from becoming void
• D) D) Transfer liability to the drawer

Q22: 22. In the context of a bill of exchange payable after sight, who is responsible for ensuring prompt presentment for payment?

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

Q23: 23. The consequences of delayed presentment of a sight draft include

• A) A) The drawee being discharged from liability
• B) B) The holder losing the right to enforce payment
• C) C) The endorser becoming liable for payment
• D) D) The drawer being released from obligation

Q24: 24. Non-prompt presentment of a promissory note payable after sight may result in

• A) A) The note being deemed void
• B) B) The maker being discharged from liability
• C) C) The payee losing all rights under the note
• D) D) The note becoming payable on demand

Q25: 25. What is the primary reason for requiring timely presentment of instruments payable after sight?

• A) A) To avoid interest charges
• B) B) To prevent the instrument from becoming overdue
• C) C) To accelerate the maturity date
• D) D) To transfer liability to the drawer

Q26: 1. In the context of Section 66 of the Negotiable Instruments Act 1881, what does "presentment for payment" refer to?

• A) A) Handing over the instrument to the payee
• B) B) Demanding payment from the drawer or acceptor
• C) C) Endorsing the instrument to a third party
• D) D) Canceling the instrument

Q27: Correct Answer: B) Demanding payment from the drawer or acceptor

• A)
• B)
• C)
• D)

Q28: 2. When should an instrument payable after sight be presented for payment?

• A) A) Immediately upon receipt
• B) B) Within a reasonable time after acceptance
• C) C) Before the maturity date
• D) D) At the convenience of the holder

Q29: Correct Answer: B) Within a reasonable time after acceptance

• A)
• B)
• C)
• D)

Q30: 3. What happens if an instrument payable after sight is not presented for payment within a reasonable time?

• A) A) The instrument becomes void
• B) B) The holder loses the right to demand payment
• C) C) The drawer is relieved of payment obligation
• D) D) The instrument becomes payable on demand

Q31: Correct Answer: C) The drawer is relieved of payment obligation

• A)
• B)
• C)
• D)

Q32: 4. Which of the following is NOT a requirement for a valid presentment for payment under Section 66?

• A) A) Identifying the payee
• B) B) Presenting the instrument at a reasonable hour
• C) C) Giving notice of dishonor to the drawer
• D) D) Making the presentment at the proper place

Q33: Correct Answer: C) Giving notice of dishonor to the drawer

• A)
• B)
• C)
• D)

Q34: 5. In a real-life scenario, if an instrument payable after sight is presented for payment late, what legal consequences may arise?

• A) A) The payee loses the right to demand payment
• B) B) The holder may still enforce payment from the drawer or acceptor
• C) C) The instrument becomes void
• D) D) The drawer is not liable for payment anymore

Q35: Correct Answer: D) The drawer is not liable for payment anymore

• A)
• B)
• C)
• D)

Q36: 6. Under Section 66, what is the significance of presenting an instrument for payment at a reasonable hour?

• A) A) It ensures the drawer has sufficient funds to honor the instrument
• B) B) It allows the payee to demand payment at their convenience
• C) C) It prevents the instrument from becoming void
• D) D) It complies with legal requirements for presentment

Q37: Correct Answer: D) It complies with legal requirements for presentment

• A)
• B)
• C)
• D)

Q38: 7. If an instrument payable after sight is not presented for payment within a reasonable time, who bears the consequences?

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

Q39: Correct Answer: C) The drawer or acceptor

• A)
• B)
• C)
• D)

Q40: 8. What is the purpose of presentment for payment under Section 66 of the Negotiable Instruments Act 1881?

• A) A) To transfer ownership of the instrument
• B) B) To demand payment from the drawer or acceptor
• C) C) To cancel the instrument
• D) D) To notify the bank of the transaction

Q41: Correct Answer: B) To demand payment from the drawer or acceptor

• A)
• B)
• C)
• D)

Q42: 9. In a scenario where an instrument payable after sight is presented for payment before it is due, what action should the payee take?

• A) A) Accept the payment immediately
• B) B) Refuse the payment
• C) C) Hold the payment until the due date
• D) D) Inform the drawer of the early presentment

Q43: Correct Answer: B) Refuse the payment

• A)
• B)
• C)
• D)

Q44: 10. What should the holder do if the payee refuses to accept payment upon presentment under Section 66?

• A) A) Endorse the instrument to a third party
• B) B) Seek legal advice for further action
• C) C) Retain the instrument for future presentment
• D) D) Cancel the instrument

Q45: Correct Answer: C) Retain the instrument for future presentment

• A)
• B)
• C)
• D)

Q46: 11. Under Section 66, what is the consequence of presenting an instrument for payment at the wrong place?

• A) A) The instrument becomes payable on demand
• B) B) The drawer is relieved of payment obligation
• C) C) The payee loses the right to demand payment
• D) D) The presentment is considered invalid

Q47: Correct Answer: B) The drawer is relieved of payment obligation

• A)
• B)
• C)
• D)

Q48: 12. What should the holder do if the drawer or acceptor refuses to pay upon presentment under Section 66?

• A) A) Initiate legal proceedings against the drawer
• B) B) Endorse the instrument to a third party
• C) C) Cancel the instrument
• D) D) Hold the instrument until the next presentment date

Q49: Correct Answer: A) Initiate legal proceedings against the drawer

• A)
• B)
• C)
• D)

Q50: 13. In a real-life scenario, if an instrument payable after sight is presented for payment on a non-business day, what should the holder do?

• A) A) Wait until the next business day to present the instrument
• B) B) Cancel the instrument
• C) C) Demand immediate payment from the drawer
• D) D) Endorse the instrument to a third party

Q51: Correct Answer: A) Wait until the next business day to present the instrument

• A)
• B)
• C)
• D)

Q52: 14. What is the time frame considered reasonable for presentment of an instrument payable after sight under Section 66?

• A) A) Within 24 hours of acceptance
• B) B) Within 3 business days of acceptance
• C) C) Within a week of acceptance
• D) D) Within a month of acceptance

Q53: Correct Answer: B) Within 3 business days of acceptance

• A)
• B)
• C)
• D)

Q54: 15. If the holder fails to present an instrument payable after sight for payment within a reasonable time, what rights may be affected?

• A) A) The right to enforce payment against the drawer
• B) B) The right to transfer ownership of the instrument
• C) C) The right to cancel the instrument
• D) D) The right to seek damages from the bank

Q55: Correct Answer: A) The right to enforce payment against the drawer

• A)
• B)
• C)
• D)

Q56: 16. When presenting an instrument for payment under Section 66, what information must be provided to the drawer or acceptor?

• A) A) Proof of identification
• B) B) Notice of dishonor
• C) C) Details of the payee and instrument
• D) D) Bank account information

Q57: Correct Answer: C) Details of the payee and instrument

• A)
• B)
• C)
• D)

Q58: 17. What actions can the drawer or acceptor take upon receiving a valid presentment for payment under Section 66?

• A) A) Refuse payment without consequences
• B) B) Pay the amount due immediately
• C) C) Request an extension for payment
• D) D) Dispute the validity of the instrument

Q59: Correct Answer: B) Pay the amount due immediately

• A)
• B)
• C)
• D)

Q60: 18. In a scenario where an instrument payable after sight is lost before presentment, what steps should the holder take?

• A) A) Cancel the instrument and issue a new one
• B) B) Notify the drawer or acceptor of the loss
• C) C) Wait for the instrument to resurface
• D) D) Seek legal advice for further action

Q61: Correct Answer: B) Notify the drawer or acceptor of the loss

• A)
• B)
• C)
• D)

Q62: 19. What should the holder do if the drawer or acceptor is unable to make payment upon presentment under Section 66?

• A) A) Cancel the instrument
• B) B) Endorse the instrument to a third party
• C) C) Seek alternative payment methods
• D) D) Hold the drawer liable for non-payment

Q63: Correct Answer: C) Seek alternative payment methods

• A)
• B)
• C)
• D)

Q64: 20. How does the concept of presentment for payment ensure the smooth functioning of negotiable instruments in commercial transactions?

• A) A) It prevents fraud and unauthorized payments
• B) B) It accelerates the maturity date of the instrument
• C) C) It eliminates the need for endorsement
• D) D) It transfers ownership of the instrument

Q65: Correct Answer: A) It prevents fraud and unauthorized payments

• A)
• B)
• C)
• D)

Q66: 21. What happens if the holder fails to make a valid presentment for payment of an instrument payable after sight?

• A) A) The instrument becomes payable on demand
• B) B) The holder loses the right to demand payment
• C) C) The instrument becomes void
• D) D) The drawer is automatically liable for payment

Q67: Correct Answer: B) The holder loses the right to demand payment

• A)
• B)
• C)
• D)

Q68: 22. In a real-life scenario, if the payee presents an instrument payable after sight for payment but the drawer disputes the validity of the instrument, what should the payee do?

• A) A) Seek a court order to enforce payment
• B) B) Cancel the instrument immediately
• C) C) Initiate negotiations with the drawer
• D) D) Endorse the instrument to a third party

Q69: Correct Answer: C) Initiate negotiations with the drawer

• A)
• B)
• C)
• D)

Q70: 23. What is the significance of presenting an instrument for payment within a reasonable time under Section 66?

• A) A) It ensures prompt payment by the drawer or acceptor
• B) B) It extends the maturity date of the instrument
• C) C) It allows for multiple presentments at the holder's discretion
• D) D) It relieves the payee of payment obligations

Q71: Correct Answer: A) It ensures prompt payment by the drawer or acceptor

• A)
• B)
• C)
• D)

Q72: 24. If an instrument payable after sight is presented for payment at the wrong place, what legal implications may arise?

• A) A) The instrument becomes void
• B) B) The drawer is relieved of payment obligation
• C) C) The payee loses the right to demand payment
• D) D) The presentment is considered invalid

Q73: Correct Answer: B) The drawer is relieved of payment obligation

• A)
• B)
• C)
• D)

Q74: 25. How does the concept of presentment for payment protect the interests of all parties involved in a negotiable instrument transaction?

• A) A) By ensuring timely payment and preventing disputes
• B) B) By transferring liability to the bank
• C) C) By requiring multiple endorsements for validity
• D) D) By allowing for indefinite extension of payment deadlines

Q75: Correct Answer: A) By ensuring timely payment and preventing disputes

• A)
• B)
• C)
• D)