Multiple choice

Which of the following statements is correct?

  1. The making of a promissory note is completed by its execution.

  2. The making of a cheque is completed by its execution.

  3. A cheque payable to a bearer is not negotiable by its delivery.

  4. A cheque payable to order is negotiable by the holder by endorsement and delivery.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course.

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