Introduction and Definition

Negotiable instrument Act

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

Sec. 5 of negotiable instruments Act 1880 deals with

Promissory Note

bill of exchange

Cheque

none of the above

- The Negotiable Instruments Act, 1881 (not 1880), defines various financial instruments.

- Section 5 specifically defines a "bill of exchange."

- A bill of exchange is a written order from one party to another to pay a specified sum to a third party on demand or at a future date.

- Option:1, "Promissory Note":

- A promissory note is a written promise to pay a certain sum of money to a specified person at a future date or on demand.

- Option:2, "Bill of Exchange": Correct Answer

- Option:3, "Cheque":

- A cheque is a bill of exchange drawn on a specified bank and payable on demand.

- Option:4, "None of the above": Incorrect, as Section 5 pertains to a bill of exchange.