Multiple choice

Which of the following is a valid promissory note?

  1. I owe A Rs. 500.

  2. I promise to pay Rs. 1,000 ten days after the death of B.

  3. I promise to pay the bearer Rs. 1,000.

  4. I promise to pay Rs. 1,000 after the marriage of B.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A “promissory note” is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker to pay a certain sum of money to, or to the order of, a certain person, or only to bearer of the instrument. Option (3) satisfies all the conditions of a promissory note.

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