Section 12: Foreign instrument

Questions on this section

1 question in 8 of our papers cite Section 12. Try these from the free papers:

1. 1. A, in Mumbai, draws a bill of exchange on B, who resides in Delhi. The bill is made payable in London. How is the bill classified under Sections 11 and 12 of the Negotiable Instruments Act, 1881?

   A.As a foreign instrument, because an inland instrument must be both drawn and payable in IndiaB.As an inland instrument only if B accepts it in India before the date of its maturityC.As an inland instrument, because it is drawn in India upon a person resident in IndiaD.As a foreign instrument, because the place where it is made payable lies outside India
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