A direction to pay a specified amount to ‘B’ and not to anyone else is
Question and options
A direction to pay a specified amount to ‘B’ and not to anyone else is
- Not a negotiable instrument
- A negotiable instrument
- A guarantee
- A promise
Answer and explanation
Correct answer: A - Not a negotiable instrument
Under Section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument is a promissory note, bill of exchange or cheque payable either to order or to bearer. An instrument payable to a particular person is payable to order only if it does not contain words prohibiting transfer, so a direction to pay B "and not to anyone else" is not negotiable. It is not a guarantee or a promise either, because it is an order to pay, not an undertaking.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
CUSAT CAT LLM
-
CUET PG Law (LL.M.)
Subject revision
Related question papers
Related exam syllabi
More solved explanations in Kinds of instruments; holder & holder in due course
- What is the current territorial extent of the Negotiable Instruments Act, 1881, under Section 1?
- Which term is defined in section 9 of the Negotiable Instruments Act, 1881?
- In negotiable instruments, the great element of negotiability is to the acquisition of property by party's own conduct and not by another's, i.e., if you take it…
- A/An ______ is one which is drawn by one person and accepted by another, without consideration, merely to enable the drawer to raise money on the bill by…
- Under Section 11 of the Negotiable Instruments Act, 1881, which of the following is deemed to be an ‘inland instrument’?