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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?

  1. 2

  2. 4

  3. 3

  4. 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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