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AIBE question and official answer

AIBE XX 2025 Set A Question 36

Read this AIBE previous year question with options and the official answer-key label, or start the timed PYQ practice for the full paper.

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Question 36 of 100 AIBE XX 2025 Set A

Read the given statements and choose the correct option. Statement 1: Under the Negotiable Instruments Act, 1881, a negotiable instrument made, drawn, accepted, or transferred without consideration creates no obligation of payment between the parties to the transaction. Statement 2: According to the same Act, if the consideration for which a negotiable instrument was issued fails in part, the holder in immediate relation is entitled to recover only the proportionate amount corresponding to the consideration actually received. In the context of the above statements under the Negotiable Instruments Act, 1881, which one of the following is correct?

  1. A Both Statements 1 and 2 are false
  2. B Only Statement 1 is true
  3. C Only Statement 2 is true
  4. D Both the Statements are true Official answer

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