A bill of exchange under section 5 of the Negotiable Instruments Act, 1881 contains which of these?
Section 5 describes a bill of exchange as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of…
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A bill of exchange under section 5 of the Negotiable Instruments Act, 1881 contains which of these?
Answer and explanation
Correct answer B
Section 5 describes a bill of exchange as an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer. A promissory note under section 4 contains an unconditional undertaking to pay.
Option feedback
Option A
A conditional promise is not the unconditional order required by section 5.
Option B
An unconditional order to pay is the distinguishing feature of a bill, alongside the other statutory requirements.
Option C
An unconditional undertaking to pay is characteristic of a promissory note under section 4, not the bill's order.
Option D
The unconditional-order alternative correctly identifies the required feature.
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