Question

A negotiable instrument means a promissory note, bill of exchange or cheque payable either ___________.

• A. to order
• B. to bearer
• C. (A) or (B)
• D. (A) and (B)

Answer 1

Answer: (C)

(A) or (B)

A negotiable instrument is a commercial document in writing. There are of three types, namely, bills of exchange, promissory notes and cheques. Section 13 of the Negotiable Instruments Act, 2000 defines “negotiable instrument” as a promissory note, bill of exchange or cheque payable either to order or to bearer.