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Under section 22 of the Negotiable Instruments Act, 1881, which of these instruments is NOT entitled to days of grace?

Question and options

Under section 22 of the Negotiable Instruments Act, 1881, which of these instruments is NOT entitled to days of grace?

  1. A bill of exchange payable thirty days after sight

  2. A cheque

  3. A bill of exchange payable three months after date

  4. A promissory note payable on a fixed date

Answer and explanation

Correct answer: B - A cheque

Section 22 of the Negotiable Instruments Act, 1881 adds three days of grace to the maturity of a promissory note or bill of exchange that is not expressed to be payable on demand. A cheque is by definition under section 6 payable on demand, so it gets no days of grace, while bills and notes payable after date, after sight or on a fixed date do.

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