Question

If a bill of exchange dated Jan 31, 2019 is payable one month after date, the due date of the instrument will be:

• A. March 4, 2019
• B. March 3, 2019
• C. February 28, 2019
• D. March 1, 2019

Answer 1

Answer:

A. March 4, 2019

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.