Which pair identifies the original parties to an ordinary promissory note before any indorsement?
Question and options
Which pair identifies the original parties to an ordinary promissory note before any indorsement?
Drawer and drawee
Maker and payee
Maker and acceptor
Drawer and payee
Answer and explanation
Correct answer: B - Maker and payee
Under section 4 of the Negotiable Instruments Act, 1881 a promissory note is an unconditional undertaking by its maker to pay a certain sum to a certain person, the payee, or to his order or to bearer; section 7 names the maker. Drawer, drawee and acceptor are parties to a bill of exchange, which contains an order rather than a promise.
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