Question

An instrument in writing, which contains an unconditional order signed by the maker, directing a certain person to pay a certain sum of money, only to the order of a certain person, or to the bearer of the instrument.

• A. promissory note
• B. bank draft
• C. bill of exchange
• D. check

Answer 1

Answer:

C. bill of exchange

BILL OF EXCHANGE:

• A bill of exchange is a credit instrument.

• It is a written acknowledgement of a debt given by one person to another

• It is drawn by creditor upon his debtor.

• It directs the debtor to pay a certain sum of money on demand or on the of a certain period.

• According to section 5 of the Indian Negotiable instruments Act of 1881, a bill of exchange is an instrument in writing, containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money, only to or to the order of a certain person, or to the bearer of the instrument.