Question
Under Section 13, a 'negotiable instrument'
means:Solution
Section 13(1) defines a negotiable instrument as a promissory note, bill of exchange or cheque payable either to order or to bearer. The Explanations clarify when an instrument is payable to order or to bearer. Sub-section (2) allows a negotiable instrument to be made payable to two or more payees jointly, or in the alternative to one of several payees. Only these three instruments are negotiable instruments under the Act.
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