Multiple choice

Payment to be made in due course

  1. not always be made to holder, but can be made to his agent or servant

  2. always has to be made to holder, but can be made to his agent or servant

  3. made to customer’s agent or servant

  4. All of the above

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A Correct answer
Explanation

Section 10 of the Negotiable Instrument Act defines payment in due course to mean the payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned. 

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