Which of the following statements qualifies a Promissory Note I I Promise to pay Shyam Rs 50 000 on ...........

Negotiable instrument Act Others

Which of the following statements qualifies a Promissory Note?

I. I Promise to pay Shyam Rs. 50,000 on demand.

II. I Promise to pay Shyam Rs. 5,00,000 along with my car on demand.

III. I Promise to pay Shyam Rs. 50,000 and rest of the fines on demand.

Only I

Only II

Only III

Both I and II

None of these.

- Statement I: "I Promise to pay Shyam Rs. 50,000 on demand."

- This is a valid promissory note. It's an unconditional written promise to pay a specific sum of money only.

- Statement II: "I Promise to pay Shyam Rs. 5,00,000 along with my car on demand."

- This is not a promissory note because it's not just money; goods (car) are also involved.

- Statement III: "I Promise to pay Shyam Rs. 50,000 and rest of the fines on demand."

- This is also invalid. The amount is uncertain because of "rest of the fines."

- Option 1: Only I

- Only the first statement qualifies as a promissory note.

- Option 2: Only II

- Wrong, II includes both money and goods.

- Option 3: Only III

- Wrong, amount is uncertain.

- Option 4: Both I and II

- Wrong, II is not valid.

- Option 5: None of these

- Wrong, I is valid.

Submit Error