How many original roles are involved in an ordinary promissory note naming a maker and a payee, before any transfer?
Question and options
How many original roles are involved in an ordinary promissory note naming a maker and a payee, before any transfer?
2
4
3
1
Answer and explanation
Correct answer: A - 2
A promissory note under section 4 of the Negotiable Instruments Act, 1881 has two original parties: the maker, who signs the undertaking to pay, and the payee, to whom payment is to be made. Unlike a bill of exchange, it has no drawee; other parties, such as indorsees, join only on negotiation.
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