A, an 18‑year‑old adult of sound mind, executes a written instrument in favour of B stating, “I promise…
Section 4 of the Negotiable Instruments Act requires a written, signed, unconditional undertaking to pay a certain sum to a certain person or order, which A has made, and an…
Choose your answer
A, an 18‑year‑old adult of sound mind, executes a written instrument in favour of B stating, “I promise to pay B ₹ 75,000 on 1st April next year.” A is fully competent, has signed the note, and the instrument contains all essential elements of a promissory note. B sues A for recovery after 1st April when A defaults. Examine the correct legal position.
Answer and explanation
Correct answer B
Section 4 of the Negotiable Instruments Act requires a written, signed, unconditional undertaking to pay a certain sum to a certain person or order, which A has made, and an eighteen-year-old adult is competent to make it. Neither attestation nor a recital of consideration is required, and consideration is presumed under section 118, so "The promissory note is valid; A is liable to pay B.".
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