A shop owner signs a written instrument that says, “I promise to pay Mira or her order ₹10,000.” What…
Section 4 defines a promissory note by the maker’s signed, unconditional undertaking to pay a certain sum and excludes banknotes and currency notes. The shop owner’s promise…
Choose your answer
A shop owner signs a written instrument that says, “I promise to pay Mira or her order ₹10,000.” What is this instrument under the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer A
Section 4 defines a promissory note by the maker’s signed, unconditional undertaking to pay a certain sum and excludes banknotes and currency notes. The shop owner’s promise matches illustration (a). A bill of exchange under section 5 instead contains an order directing payment.
Option feedback
Option A
Section 4 covers the signed, unconditional promise by the maker to pay a certain sum.
Option B
A bill of exchange directs another person to pay.
Option C
A private promise payable to a named person’s order is not a currency note.
Option D
A cheque is drawn on a specified banker, and truncation occurs in clearing.
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 -
Madhya Pradesh Judicial Services
-
CUET PG Law (LL.M.)
Subject revision