Which of the following is NOT recognised as a negotiable instrument under Section 13 of the Negotiab...........

Commercial and Business Laws Negotiable Instrument Act

Which of the following is NOT recognised as a negotiable instrument under Section 13 of the Negotiable Instruments Act, 1881 ?

Bill of Exchange

Promissory Note

Letter of Credit

Cheque

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Explanation:

Here’s the thing:

- Bill of Exchange: This is covered under Section 13 of the Negotiable Instruments Act, 1881. It’s basically an order from one person to another to pay a certain sum.

- Promissory Note: Also recognised under Section 13. A written promise to pay.

- Letter of Credit: This is not mentioned in Section 13 as a negotiable instrument. It’s more of a bank guarantee for payment, not something you freely transfer like cash or a cheque.

- Cheque: Absolutely in there, and a classic example of a negotiable instrument.

So, the odd one out is:

Option 3: Letter of Credit