Each of the following written promises is signed by its maker. Which of them is a promissory note under the Negotiable Instruments Act, 1881?
Question and options
Each of the following written promises is signed by its maker. Which of them is a promissory note under the Negotiable Instruments Act, 1881?
"I promise to pay B ₹5,000 thirty days after C's death."
"I promise to pay B ₹5,000 thirty days after my marriage to C."
"I promise to pay B ₹5,000 and all other sums that will then be due to him."
"I promise to pay B ₹5,000 on C's death, provided C leaves me enough to pay it."
Answer and explanation
Section 4 requires an unconditional undertaking to pay a certain sum, and section 5 provides that a promise is not conditional merely because payment falls a fixed period after an event certain to happen, such as a death, though its date is uncertain. A promise tied to the maker's marriage depends on an event that may never happen, and a promise to pay on death only if enough is left is conditional, so neither is a promissory note. A promise that adds 'all other sums due' fails because the amount is not certain.
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