Question

The term Promissory notes is defined in section _______ of the Negotiable Instruments Act.

• A. $3$
• B. $4$
• C. $6$
• D. $8$

Answer 1

Answer: (B)

$4$

According to section 4 of the Negotiable Instruments Act, 1881, a promissory note is defined as an instrument 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. However, according to the Reserve Bank of India Act, a promissory note payable to bearer is illegal.