How must the maker's promise to pay be expressed in a promissory note under Section 4?
Question and options
How must the maker's promise to pay be expressed in a promissory note under Section 4?
As an undertaking to pay the amount that the payee later fixes
As an unconditional undertaking to pay
As a promise to pay if a stated future event happens
As an unconditional order to a third person to pay
Answer and explanation
Section 4 of the Negotiable Instruments Act, 1881 requires a promissory note to contain an unconditional undertaking, signed by the maker, to pay a certain sum of money. A promise conditional on a future event, or one to pay an amount not yet fixed, fails the test, and an order to a third person to pay is the mark of a bill of exchange under section 5.
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