Site navigation

Which instrument is defined by section 4 of the Negotiable Instruments Act, 1881?

Question and options

Which instrument is defined by section 4 of the Negotiable Instruments Act, 1881?

  1. Cheque

  2. Negotiable instrument

  3. Promissory note

  4. Bill of exchange

Answer and explanation

Correct answer: C - Promissory note

Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note as a signed written instrument, not a bank note or currency note, containing an unconditional undertaking to pay a certain sum of money to a certain person or to his order or to bearer. The bill of exchange is defined in section 5, the cheque in section 6 and the negotiable instrument in section 13.

Practice for these exams

Related exam syllabi

More solved explanations in Kinds of instruments; holder & holder in due course