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Law · Q132

Negotiable Instruments Act

Graduate and Post Graduate · Law · question 132

Q132

A draws a bill on B for 1 500 payable to the order of A. B accepts the bill, but subsequently dishonours it by non-payment. Asues B on the bill. B proves that it was accepted for value as to 1 400, and as an accommodation to the plaintiff as to the residue. Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the following amount:

A.
1 900
B.
1 500
C.
1 400
Answer
D.
1 100

Answer: Option C

Solution

Answer: Option C
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