Question

The maximum validity period of a promissory note is ---.

• A. 5 yrs
• B. 3 yrs
• C. 2 yrs
• D. 4 yrs

Answer 1

Answer:

B. 3 yrs

Promissory Note:

• In promissory note is an unconditional undertaking or promise. 

• Acceptance is not required on the Case of promissory note.

• The drawer of a promissory note is known as maker. 

• The primary liability in the case of promissory note is with the maker. 

• A promissory note must be properly stamped as per Indian stamp Act. 

• Affix of revenue stamps of Re1 are necessary in the case of promissory notes. 

• The drawer of a promissory note is always a debtor.

• The days of grace for a promissory note are 3 days 

• The maturity of a promissory note is the date on which it falls due. 

• When the maturity promissory note is on a public holiday, the instrument shall be deemed to be due on next preceding day 

• The promissory note shall be properly stamped 

• The payment of promissory note in Country's legal currency

• The maximum validity period of promissory note is 3 yrs