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A bill of exchange is payable a stated number of days after its date. Under section 24 of the…

For a bill or promissory note payable a specified number of days after date, section 24 directs that the instrument’s date be excluded from that count. Sections 22 and 25…

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A bill of exchange is payable a stated number of days after its date. Under section 24 of the Negotiable Instruments Act, 1881, how is the date of the bill treated when counting that period?

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Answer and explanation

Correct answer C

For a bill or promissory note payable a specified number of days after date, section 24 directs that the instrument’s date be excluded from that count.

Sections 22 and 25 separately deal with days of grace and the effect of a public holiday on maturity.

Option feedback

Option A

Section 24 excludes the instrument’s date from the stated day count.

Option B

The section excludes the date even if it is a business day.

Option C

Section 24 excludes the date of the bill when counting the period.

Option D

Exclusion of the date does not depend on whether it is a holiday. Section 25 concerns a holiday falling on the maturity date.

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