An instrument is to be called ‘Negotiable’ as per Negotiable Instruments Act, 1881, if it possesses which of the following characteristics?
A. Can be transferred infinitum.
B. Having minimum lock-in period.
C. Freely transferable.
D. The holder cannot sue in his own name.
E. Holder’s title free from defects.
Choose the correct answer from the options given below:
Codes

Correct option is A

According to the Negotiable Instruments Act, 1881, an instrument is considered "negotiable" if it possesses certain characteristics.
a. Can be transferred infinitum: A negotiable instrument can be transferred from one person to another indefinitely, ensuring its free transferability.
c. Freely transferable: A negotiable instrument should be freely transferable from one party to another without any restrictions.
e. Holder's title free from defects: A negotiable instrument provides the holder with a title that is free from defects or any adverse claims.
Therefore, the correct answer is (a) a, c and e only
b. Having minimum lock-in period: The concept of a minimum lock-in period is not a characteristic of negotiable instruments under the Negotiable Instruments Act, 1881.
d. The holder cannot sue in his own name: The holder of a negotiable instrument can sue in their own name to enforce their rights and recover the amount due.