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Question
Introduction of Negotiable Instruments
A negotiable instrument dated 3lst January, 2019, is made payable at one months after date. The instrument is at maturity on ______.
Introduction of Negotiable Instruments
A negotiable instrument dated 3lst January, 2019, is made payable at one months after date. The instrument is at maturity on ______.
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Solution
The correct option is C 3rd March, 2019
Maturity means the date on which a bill of exchange falls due for payment. The date of maturity is to be calculated in respect of bills which are payable after a specified time. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable. Therefore, in this case, the maturity is after it becomes payable i.e. one month later and adding three days grace which makes the date of maturity to be 3rd March, 2019.
Maturity means the date on which a bill of exchange falls due for payment. The date of maturity is to be calculated in respect of bills which are payable after a specified time. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable. Therefore, in this case, the maturity is after it becomes payable i.e. one month later and adding three days grace which makes the date of maturity to be 3rd March, 2019.
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