Q: Discuss Section 118 of negotiable instrument act, 1881 ?

Ans: Section 118 of negotiable instrument act deals with presumptions as to negotiable instrument.

1. If any negotiable Instrument was endorsed, it will be presumed that it will be for consideration.

2.  The date mentioned will be the date of drawn.

3. The negotiable Instrument can be transferred many times before maturity period.

4. If any document is endorsed, it is mentioned in front side or back side and it is considered true and in ditto.

5.  If any instrument is lost, it is considered as duly stamped.

6. The holder in due course is considered as holder.He is the owner of negotiable Instrument.

7. If any document is received with fraud, it is the responsibility of holder in due course to prove that he is the holder in due course of that document.

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