Commercial paper must be in writing, contain an unconditional promise or order for a sum certain, be payable on demand or at a definite time, and be payable to the bearer or to someones order.

BUSINESS LAW

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Commercial paper must be in writing, contain an unconditional promise or order for a sum certain, be payable on demand or at a definite time, and be payable to the bearer or to someone’s order.

A	Antedated
B	Postdated
C	Negotiable
D	Money

Explanation:

Detailed explanation-1: -A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at fixed or determinable future time a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

Detailed explanation-2: -Thus, Bill of Exchange is an unconditional order, given by the maker of the instrument to other person asking him to pay a certain sum of money to him or his order or to the bearer of the document.

Detailed explanation-3: -An order paper, or order instrument, is a negotiable instrument that is payable to a specified person or its assignee. An instrument such as an order paper is negotiable only if it is payable to the order of a specified person; meaning that it must designate an individual’s name to be paid out.

Detailed explanation-4: -A promissory note is a financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.

There is 1 question to complete.

BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS LAW