The term ‘Negotiable instrument’ is defined in the Negotiable Instrument Act, 1881, under section :

All India Bar Examination (AIBE) 4-IV Previous Year Question Papers with Answers

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78.

The term ‘Negotiable instrument’ is defined in the Negotiable Instrument Act, 1881, under section :

A: Section 12

B: Section 13

C: Section 13A

D: Section 13B

The answer is: B

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Explanation

The correct option is B: Section 13.

The term 'Negotiable instrument' is defined in the Negotiable Instrument Act, 1881, under Section 13 (1), which states:

"A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer."

This means that a negotiable instrument is a written document that can be transferred from one person to another by delivery or endorsement, and that entitles the holder to receive a certain amount of money from the person who issued it or the person who accepted it. A promissory note is a promise to pay a certain sum of money to a specified person or order. A bill of exchange is an order to pay a certain sum of money to a specified person or order. A cheque is an order to a bank to pay a certain sum of money to a specified person or order or bearer.