BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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I promise to pay B or order INR 500
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I acknowledge myself to be indebted to B for INR 1, 000 to be paid on demand for value received
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I promise to pay B INR 10, 000 after three months
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I promise to pay B INR 500 seven days after my marriage with C
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Detailed explanation-1: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.
Detailed explanation-2: -a Hundi is an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order. Hundis, being a part of the informal system have no legal status and are not covered under the Negotiable Instruments Act, 1881.
Detailed explanation-3: -An instrument which contains, “I promise to pay C Rs. 100 on the 31st December, 1940, provided the war ends towards the end of November 1940", cannot constitute a Promissory note, as it does not contain an unconditional undertaking to pay the sum mentioned therein.
Detailed explanation-4: -Cheque bearing “not negotiable”.