Arjun draws a bill of exchange at London payable in Mumbai What kind of instrument is it ........

Negotiable instrument Act Others

Arjun draws a bill of exchange at London payable in Mumbai. What kind of instrument is it?

Inland Instrument

Foreign Instrument

Time Instrument

Clean Instrument

- The bill is drawn in London and payable in Mumbai.

- An Inland Instrument is one drawn and payable within the same country.

- A Foreign Instrument is one drawn in one country and payable in another country.

- A Time Instrument is payable after a certain period (not location-specific).

- A Clean Instrument relates to whether the bill is accompanied by documents, not the place of drawing and payment.

Correct answer: Option 2 - Foreign Instrument

- Since the bill is drawn in London and payable in Mumbai (two different countries), it is a foreign instrument.

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