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      Question

      Under Section 32, in the absence of a contract to the

      contrary, the maker of a promissory note and the acceptor of a bill before maturity are bound to pay:
      A Only upon notice of dishonour Correct Answer Incorrect Answer
      B The amount at maturity according to the apparent tenor of the note or acceptance Correct Answer Incorrect Answer
      C Only half the amount due Correct Answer Incorrect Answer
      D Nothing until the holder proves consideration Correct Answer Incorrect Answer
      E The amount only to the original payee Correct Answer Incorrect Answer

      Solution

      Section 32 provides that, in the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount at maturity according to the apparent tenor of the note or acceptance. The acceptor of a bill at or after maturity is bound to pay the amount to the holder on demand. In default, they must compensate any party for loss or damage caused.

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