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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?

  1. Drawer and drawee

  2. Maker and payee

  3. Maker and acceptor

  4. 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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