A cheque is dishonored by______.

non payment only.

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partial payment.

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both a & b.

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none of the above.

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Solution

The correct option is D both a & b.
A cheque is dishonored by both non payment as well as partial payment. A cheque gets dishonored when the bank fails to pay the mentioned amount to payee. When the cheque deposited by anybody for collection or presented for payment gets refused by the bank, it is known as dishonor of cheque.

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