Multiple choice

________ days of grace are allowed in case of time bills for calculating date of maturity.

  1. 2

  2. 4

  3. 3

  4. 5

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In negotiable instruments law, 3 days of grace are added to the maturity date of time bills (bills payable at a future date) to accommodate payment processing delays, weekends, and holidays. The grace period gives the drawee extra time to arrange payment without considering the bill dishonored. This period is mandatory for time bills unless expressly waived. Immediate payment bills (at sight) don't get grace days.