CSEET · Business Laws and Management · Elements of Law relating to Negotiable Instruments
Under the Negotiable Instruments Act, 1881, a cheque, and a promissory note or bill of exchange in which no time for payment is specified, are:
They are payable on demand. The Act states that a promissory note or bill of exchange in which no time for payment is specified, and a cheque, are payable on demand, so no waiting period or grace is involved.
- APayable after three days of grace
- BPayable on demandCorrect
- CPayable only after presentment for acceptance
- DPayable at the end of thirty days
Explanation
The Act provides that a promissory note or bill of exchange with no time for payment specified, and a cheque, are payable on demand. No fixed waiting period or acceptance requirement applies in that case.
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