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Which instrument is defined by section 6 of the Negotiable Instruments Act, 1881?

Question and options

Which instrument is defined by section 6 of the Negotiable Instruments Act, 1881?

  1. Promissory note

  2. Negotiable instrument

  3. Bill of exchange

  4. Cheque

Answer and explanation

Correct answer: D - Cheque

Section 6 of the Negotiable Instruments Act, 1881 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand, including the electronic image of a truncated cheque and a cheque in electronic form. The promissory note is defined in section 4, the bill of exchange in section 5 and the negotiable instrument in section 13.

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