Negotiable Instruments – Page 2

BL – Nov 2020 – L1 – SB – Q5d – Negotiable Instruments

Explain different cheque crossing types and define negotiable instruments.

Question

Crossing of cheques has legal implications in banking transactions, and a cheque is a type of negotiable instrument.

Required:
i. A cheque instruction to “pay Ronke the sum of N50,000.00” without crossing the face of the cheque with two parallel lines.
ii. “Pay Andrew N100,000” with two parallel lines traversing the face of the cheque.
iii. “Pay Mary N150,000” with two parallel lines with Congo Bank written in between the two parallel lines on the face of the cheque.
iv. “Pay Ngozi N200,000” and by cheque with two parallel lines and the words “account payee only” written in between the two parallel lines.
v. Define negotiable instruments.

Answer

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Tags: Banking Transactions, Cheques, Crossing, Negotiable Instruments, Payment Instructions
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2020

BL – Nov 2020 – L1 – SA – Q15 – Negotiable Instruments

Objective question on identifying the legal status of a payee in possession of a bill after providing consideration.

Question

15. A payee that is in possession of a bill he obtained after giving consideration to the drawer is known in law as
A. Holder for value
B. Holder in due course
C. Drawee
D. Holder of bill
E. Holder for the meantime

Answer

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Tags: Bill of Exchange, Holder in Due Course, Law of Negotiability, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2020

BL – May 2012 – L1 – SA – Q19 – Negotiable Instruments

Identify the document used to secure payment in commercial transactions.

Question

The documents that are used in commercial and financial transactions to secure payment of money are:

A. ATM Cards
B. Bills of Lading
C. Payment Vouchers
D. Negotiable Instruments
E. Credit Cards

Answer

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Tags: Business Law, Commercial Law, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2012

BL – May 2012 – L1 – SA – Q7 – Negotiable Instruments

Identifying conditions under which a bank may be excused from paying a customer's cheque.

Question

A bank may be excused from the obligation to pay a customer’s cheque EXCEPT when:

A. There is an unsigned alteration on the cheque
B. The cheque is stale
C. The drawer’s death comes to the notice of the bank
D. The bank does not have enough cash
E. There is an effective countermand

Answer

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Tags: Banking Law, Business Law, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2012

BL – Nov 2011 – L1 – SB – Q6 – Negotiable Instruments

Understanding the characteristics of negotiable instruments, banker's duties, revocation of wills, and parties to a bill of exchange.

Question

(a) State FOUR characteristics of a negotiable instrument. (4 Marks)

(b) Mr. Eddie is a customer of Perfect Bank Limited. He issued a cheque for the sum of N20,000 to Mr. Jossy. At the time of issuing the cheque, his account was in credit to the tune of N150,000. The cheque was dishonored by the bank. Mr. Eddie wants to sue the bank. You are required to advise Mr. Eddie. (5 Marks)

(d) State the parties to a Bill of Exchange. (3 Marks)

Answer

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Tags: Banker-Customer Relationship, Bill of Exchange, Negotiable Instruments, Revocation, Will
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2011

BL – Nov 2011 – L1 – SA – Q2 – Negotiable Instrument

Identifying the negotiable instrument that becomes payable on demand as part of a banker and customer relationship.

Question

What is the type of negotiable instrument that becomes payable on demand as part of the relationship between a banker and a customer?

Answer

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Tags: Banking, Cheques, Negotiable Instruments, Payable on Demand
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2011

BL – Nov 2011 – L1 – SA – Q1 – Negotiable Instruments

The question tests knowledge of the term used when an endorser specifies to whom a bill is payable

Question

Where an endorser signs the Bill and expressly states to whom or to whose order the Bill is now payable, the endorsement is referred to as …………………………………….

Answer

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Tags: Banking, Bill of Exchange, Endorsement, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2011

BL – Nov 2011 – L1 – SA – Q8 – Negotiable Instruments

Identify which type of acceptance does not qualify as a qualified acceptance of a Bill.

Question

A qualified acceptance of a Bill may occur in any of the following ways EXCEPT by:
A. Conditional acceptance
B. Partial acceptance
C. Restriction of payment to a place
D. Signature
E. Stipulation of time of payment

Answer

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Tags: Acceptance, Bill of Exchange, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2011

BL – Nov 2012 – L1 – SA – Q17 – Negotiable Instruments

Identify which of the options is not a negotiable instrument.

Question

Which of the following is NOT a negotiable instrument?

A. Credit card
B. Dividend warrants
C. Treasury bills
D. Traveller’s cheques
E. Bearer bonds

Answer

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Tags: Credit Cards, Financial Transactions, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2012

BL – May 2013 – L1 – SA – Q19 – Negotiable Instruments

This question tests the knowledge of the person to whom a bill is endorsed.

Question

The person to whom a bill is endorsed is called the ___________.

Answer

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Tags: Bills, Endorsement, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2013

BL – May 2013 – L1 – SA – Q10 – Negotiable Instruments

This question tests the definition of the process of transferring a bill.

Question

The process of transferring a bill from one person to another in such manner as to constitute the transferee the holder of the bill is called ___________.

Answer

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Tags: Negotiable Instruments, Transfer of Bills
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2013

BL – May 2013 – L1 – SA – Q19 – Negotiable Instruments

This question assesses the understanding of what is not recognized as a negotiable instrument under the law.

Question

Which of the following is NOT recognized by law as a negotiable instrument?

A. Bill of exchange
B. Cheque
C. Promissory note
D. I.O.U
E. Dividend warrants

Answer

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Tags: IOU, Negotiable Instruments, Promissory Note
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2013

BL – May 2014 – L1 – SB – Q6 – Negotiable Instruments

Discussing characteristics of negotiable instruments and banker duties.

Question

a. “A Negotiable Instrument must express clarity in the instruction on the instrument without any ambiguity”. Explain TWO characteristics of a Negotiable Instrument. (4 Marks)

b. The relationship between the banker and his customer is said to be the relationship between a debtor and a creditor. You are required to state FIVE duties of a banker to its customer. (5 Marks)

c. A testator that has made a Will can only revoke it under certain circumstances. Explain THREE ways by which a Will may be revoked. (6 Marks)

Answer

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Tags: Banking Law, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2014

BL – May 2014 – L1 – SA – Q18 – Negotiable Instruments

Identifying the principle of transfer of negotiable instruments.

Question

A bonafide transferee of a negotiable instrument takes it free from equities if he has given valuable ____________ for it.

Answer

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Tags: Equities, Negotiable Instruments, Transfer
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2014

BL – May 2014 – L1 – SA – Q18 – Negotiable Instruments

Understanding the various ways a bill can be discharged.

Question

A bill can be discharged in any of the following ways EXCEPT by:
A. Payment in due course
B. Physical destruction of the bill
C. Acceptor becoming holder of the bill
D. Renunciation
E. Cancellation

Answer

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Tags: Bills of Exchange, Discharge, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: MAY 2014

BL – Nov 2013 – L1 – SB – Q6a – Negotiable Instruments

Explaining three types of bills of exchange.

Question

State and explain THREE types of Bills of Exchange.

Answer

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Tags: Bills of Exchange, Legal Documentation, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2013

BL – Nov 2013 – L1 – SA – Q18 – Negotiable Instruments

Question on identifying the person in whose favour a Bill is drawn.

Question

The person in whose favour a Bill is drawn, is known as ………………………….

Answer

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Tags: Banking Law, Bills of Exchange, Holder, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2013

BL – Nov 2013 – L1 – SA – Q17 – Negotiable Instruments

Identifies a bill lacking in material particulars.

Question

A bill lacking in some material particular is known as

A. Inland bill
B. Incomplete or inchoate bill
C. Promissory bill
D. Esoteric bill
E. Accelerated bill

Answer

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Tags: Bills of Exchange, Multiple Choice, Negotiable Instruments
Level: Level 1

Topic: Negotiable Instruments
Series: NOV 2013

BL – Nov 2015 – L1 – SA – Q13 – The Nigerian Legal System

Law allowing transfer of legal title to negotiable instruments by delivery.

Question

The law that allows the transfer of legal title to cheques, promissory notes etc by mere handing over or mere delivery is
A. Bills of Exchange Act
B. Banks and other Financial Institutions Act
C. Bills of Lading Act
D. Companies Income Tax Act
E. Central Bank of Nigeria Act

Answer

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Tags: Legal Title, Multiple Choice, Negotiable Instruments, Transfer
Level: Level 1

Topic: The Nigerian Legal System
Series: NOV 2015

BL – Nov 2015 – L1 – SA – Q12 – Law Relating to Banking

Court jurisdiction for trying offences under the Money Laundering Act.

Question

The court that has the exclusive jurisdiction to try offences under the Money Laundering (Prohibition) Act is the
A. State High Court
B. Magistrate Court
C. Federal High Court
D. Sharia Court of Appeal
E. Criminal Court

Answer

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Tags: Legal Title, Multiple Choice, Negotiable Instruments, Transfer
Level: Level 1

Topic: Law Relating to Banking
Series: NOV 2015

Question Tag: Negotiable Instruments

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BL – Nov 2020 – L1 – SB – Q5d – Negotiable Instruments

Explain different cheque crossing types and define negotiable instruments.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q5d – Negotiable Instruments"

BL – Nov 2020 – L1 – SA – Q15 – Negotiable Instruments

Objective question on identifying the legal status of a payee in possession of a bill after providing consideration.

You're reporting an error for "BL – Nov 2020 – L1 – SA – Q15 – Negotiable Instruments"

BL – May 2012 – L1 – SA – Q19 – Negotiable Instruments

Identify the document used to secure payment in commercial transactions.

You're reporting an error for "BL – May 2012 – L1 – SA – Q19 – Negotiable Instruments"

BL – May 2012 – L1 – SA – Q7 – Negotiable Instruments

Identifying conditions under which a bank may be excused from paying a customer's cheque.

You're reporting an error for "BL – May 2012 – L1 – SA – Q7 – Negotiable Instruments"

BL – Nov 2011 – L1 – SB – Q6 – Negotiable Instruments

Understanding the characteristics of negotiable instruments, banker's duties, revocation of wills, and parties to a bill of exchange.

You're reporting an error for "BL – Nov 2011 – L1 – SB – Q6 – Negotiable Instruments"

BL – Nov 2011 – L1 – SA – Q2 – Negotiable Instrument

Identifying the negotiable instrument that becomes payable on demand as part of a banker and customer relationship.

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BL – Nov 2011 – L1 – SA – Q1 – Negotiable Instruments

The question tests knowledge of the term used when an endorser specifies to whom a bill is payable

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BL – Nov 2011 – L1 – SA – Q8 – Negotiable Instruments

Identify which type of acceptance does not qualify as a qualified acceptance of a Bill.

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BL – Nov 2012 – L1 – SA – Q17 – Negotiable Instruments

Identify which of the options is not a negotiable instrument.

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BL – May 2013 – L1 – SA – Q19 – Negotiable Instruments

This question tests the knowledge of the person to whom a bill is endorsed.

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BL – May 2013 – L1 – SA – Q10 – Negotiable Instruments

This question tests the definition of the process of transferring a bill.

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BL – May 2013 – L1 – SA – Q19 – Negotiable Instruments

This question assesses the understanding of what is not recognized as a negotiable instrument under the law.

You're reporting an error for "BL – May 2013 – L1 – SA – Q19 – Negotiable Instruments"

BL – May 2014 – L1 – SB – Q6 – Negotiable Instruments

Discussing characteristics of negotiable instruments and banker duties.

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BL – May 2014 – L1 – SA – Q18 – Negotiable Instruments

Identifying the principle of transfer of negotiable instruments.

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BL – May 2014 – L1 – SA – Q18 – Negotiable Instruments

Understanding the various ways a bill can be discharged.

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BL – Nov 2013 – L1 – SB – Q6a – Negotiable Instruments

Explaining three types of bills of exchange.

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BL – Nov 2013 – L1 – SA – Q18 – Negotiable Instruments

Question on identifying the person in whose favour a Bill is drawn.

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BL – Nov 2013 – L1 – SA – Q17 – Negotiable Instruments

Identifies a bill lacking in material particulars.

You're reporting an error for "BL – Nov 2013 – L1 – SA – Q17 – Negotiable Instruments"

BL – Nov 2015 – L1 – SA – Q13 – The Nigerian Legal System

Law allowing transfer of legal title to negotiable instruments by delivery.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q13 – The Nigerian Legal System"

BL – Nov 2015 – L1 – SA – Q12 – Law Relating to Banking

Court jurisdiction for trying offences under the Money Laundering Act.

You're reporting an error for "BL – Nov 2015 – L1 – SA – Q12 – Law Relating to Banking"

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