Which instrument is defined by section 5 of the Negotiable Instruments Act, 1881?
Question and options
Which instrument is defined by section 5 of the Negotiable Instruments Act, 1881?
Cheque
Promissory note
Bill of exchange
Negotiable instrument
Answer and explanation
Correct answer: C - Bill of exchange
Section 5 of the Negotiable Instruments Act, 1881 defines a bill of exchange as a signed written instrument containing an unconditional order directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer. The promissory note is defined in section 4, the cheque in section 6 and the negotiable instrument in section 13.
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More solved explanations in Kinds of instruments; holder & holder in due course
- Which of the following is not true in the context of a promissory note?
- The person specified in an indorsement in full is called:
- The Negotiable Instruments Act is primarily enacted to:
- Under the Negotiable Instruments Act, 1881, a person named in addition to the drawee to be resorted to in case of need is called:
- Which of the following is not a negotiable instrument?