New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is not treated as 'promissory

    note' as per Section 4 of the Negotiable Instrument Act, 1881? A signed the instrument in following terms
    A I promise to pay B 5000 rupees Correct Answer Incorrect Answer
    B Mr. B. I promise to pay 5000 rupees to you on demand Correct Answer Incorrect Answer
    C I promise to pay B a large sum of money in future Correct Answer Incorrect Answer
    D I promise to pay B or order 5000 rupees Correct Answer Incorrect Answer

    Solution

    Option 3 is not a promissory note as definite sum is not mentioned. According to Section 4, a promissory note is: ·         An instrument (not being bank note or currency note) in writing ·         Containing an unconditional undertaking ·         Signed by the maker ·         To pay a certain sum of money only to or to the order of , a certain person , or to the bearer of the instrument. Ex- I promise to pay B or order Rs 500.

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