Which one of the following is a promissory note when A signs the instrument?
Under Section 4 of the Negotiable Instruments Act, 1881, a promissory note must contain an unconditional undertaking, signed by the maker, to pay a certain sum of money to…
Choose your answer
Which one of the following is a promissory note when A signs the instrument?
Answer and explanation
Correct answer A
Under Section 4 of the Negotiable Instruments Act, 1881, a promissory note must contain an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, which "I promise to pay B or order Rs.10,000/- on demand" satisfies. "Mr. B, I. Owe. You. Rs.10,000/-" is a mere acknowledgement of debt without a promise to pay, and "I promise to pay B Rs.10,000/- and such other sums which shall be due to him" is not for a certain sum.
Practice for these exams
-
All India Bar Examination (AIBE)
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
CUET PG Law (LL.M.)
Subject revision