NIA 45 — Partial failure of consideration not consisting of money

Negotiable Instruments Act, 1881

Statutory text

Where  a part of  the  consideration
for which a person signed a promissory note, bill of exchange or cheque, though not consisting of money,
is  ascertainable  in  money  without  collateral  enquiry,  and  there  has  been  a  failure  of  that  part,  the  sum
which  a  holder  standing  in  immediate  relation  with  such  signer  is  entitled  to  receive  from  him  is proportionally reduced.

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