Question

Classification of Negotiable Instruments
A promissory note, bill of exchange or cheque is payable to order _____ and does not contain any words prohibiting transfer or indicating an intention that it shall not be transferable.

• A. Which is expressed to be so payable
• B. The only or last endorsement on the instrument is an endorsement in blank
• C. Which is expressed to be payable to a particular person
• D. (A) or (C)

Answer 1

Answer: (D)

(A) or (C)

Under the explanation (i) to the section 13 of the NI Act, 1881, a promissory note, bill of exchange or cheque is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it shall not be transferable