Question
Legal Studies Question on Laws of Contract
In the light of Negotiable Instruments Act, 1881, at what rate interest will be charged if the rate of interest is not mentioned on the negotiable instruments?
A
6% per annum
B
10% per annum
C
18% per annum
D
20% per annum
Answer
18% per annum
Explanation
Solution
According to the Negotiable Instruments Act, 1881, if a negotiable instrument does not specify an interest rate, the default rate is set at 18% per annum.