A negotiable instrument may be dishonoured

By non-acceptance
By non-payment
Both A and B
Neither A nor B

The correct answer is C. Both A and B.

A negotiable instrument is a document that can be easily transferred from one person to another. It is a promise to pay a certain amount of money on a specific date. Negotiable instruments can be dishonoured if the maker or acceptor of the instrument does not pay the amount due.

Non-acceptance occurs when the drawee of a bill of exchange refuses to accept the bill. This can happen if the drawee does not have enough funds to cover the amount of the bill or if they do not want to be liable for the payment.

Non-payment occurs when the maker of a promissory note or the acceptor of a bill of exchange does not pay the amount due on the due date. This can happen if the maker or acceptor does not have enough funds to cover the amount of the instrument or if they do not want to be liable for the payment.

Both non-acceptance and non-payment can result in the negotiable instrument being dishonoured. If a negotiable instrument is dishonoured, the holder of the instrument may be able to take legal action to recover the amount due.