Assume a signed instrument states, “I promise to pay B ₹500 and all other sums that become due to B.”…
Section 4 requires a certain sum and gives substantially this wording as an example that fails to create a promissory note. The document is a promise with an uncertain…
Choose your answer
Assume a signed instrument states, “I promise to pay B ₹500 and all other sums that become due to B.” Which classification fits the instrument under the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer D
Section 4 requires a certain sum and gives substantially this wording as an example that fails to create a promissory note. The document is a promise with an uncertain total. Section 5 requires an order to pay a certain sum, and section 17 applies only when the instrument may be construed as either a promissory note or a bill of exchange.
Option feedback
Option A
A promissory note must undertake to pay a certain sum. The additional sums make the total uncertain.
Option B
A bill of exchange directs someone to pay a certain sum. This wording gives a promise and leaves the total uncertain.
Option C
Section 17 concerns an instrument capable of being read either as a promissory note or a bill of exchange. This instrument cannot be read as either.
Option D
The amount could include sums beyond ₹500, and the instrument does not fix that total.
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