Section 4 — Promissory Note
Section 4 NI Act: What makes a promissory note valid? Key rules on unconditional promise, certain sum & payee — explained for CA Inter May 2
Paper 2 — Corporate & Other Laws · Chapter
Negotiable Instruments Act 1881
Key provisions of the NI Act 1881 — promissory notes, bills of exchange, cheques, holder in due course, dishonour and Section 138. Frequently tested 4–6 mark questions.
6 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 5 — Bill of Exchange
Section 5 NI Act: What is a Bill of Exchange? Definition, 3 parties, valid conditions, and exam-ready examples for CA Inter May 2026.
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3
Section 6 — Cheque
Section 6 NI Act 1881: Definition of cheque including truncated cheque and e-cheque explained for CA Inter May 2026 exam with examples.
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4
Section 9 — Holder in Due Course
Section 9 NI Act: What is a Holder in Due Course? 4 conditions explained with examples for CA Inter May 2026 — HDC rights, protection from d
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5
Section 13 — Negotiable Instrument
Section 13 NI Act 1881 explained: what counts as a negotiable instrument, payable to order vs bearer, blank endorsement rules — CA Inter exa
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6
Section 138 — Dishonour of Cheque for Insufficiency of Funds
Section 138 NI Act explained for CA Inter: cheque bounce offence, 2-year jail or 2x fine, and the 3 critical provisos every student must kno
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