Multiple choice

When the payment is made by a negotiable instrument it is usually a conditional payment, the condition being that the instrument shall be duly honoured.

  1. True

  2. False

  3. Partly true

  4. Cannot say

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

Payment by negotiable instrument (cheque, bill of exchange, promissory note) is conditional payment - it's not final until the instrument is honored (cleared). If the instrument is dishonored, the original debt revives and the seller can sue on the original debt.