Question

Which of the following statement is true ?

• A. A bill contains an unconditional promise to pay
• B. Noting charges are borne by the drawer in the event of dishonor of bill
• C. Noting charges are borne by the drawee in the event of dishonor of bill
• D. A bill is drawn by purchaser

Answer 1

The correct option is C

Noting charges are borne by the drawee in the event of dishonor of bill

Initially noting charges are paid by the drawer of the bill but subsequently, such charges are recovered by the drawer to the drawee. hence, the burden of noting charges are ultimately borne by the drawee.