Section 10: “Payment in due course”

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1 question in 4 of our papers cite Section 10. Try these from the free papers:

1. 1. Under Section 10 of the Negotiable Instruments Act, 1881, "payment in due course" means payment in accordance with the apparent tenor of the instrument, made:

   A.only after the drawer or maker has confirmed in writing to the paying banker that the instrument is genuine, valid and still wholly unpaid to anyoneB.in good faith and without negligence to any person in possession of it, where nothing gives reasonable ground to believe he is not entitledC.only to the payee named in the instrument, whatever the circumstances in which another person may happen to hold itD.on the date of maturity to any person who presents it, even if the payer has reasonable ground to doubt his entitlement to it
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