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?
Cheque
Negotiable instrument
Promissory note
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.
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