Which of the following conditions must be satisfied to treat a payment as a payment in due course?
(a) payment as per apparent tenor
(b) payment of holder or holder in due course
(c) payment in good faith and without negligence
(d) payment should be made through the bank account only
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(a) to (c)
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(a) to (d)
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(a), (c) and (d)
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(a), (b) and (d)
A
Correct answer
Explanation
"Payment in due course” means 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 as in "THE NEGOTIABLE INSTRUMENTS ACT, 1881".