Question

Which of these statements is not true about a Promissory note?

• A. No notice of dishonour of Promissory note is required
• B. Dishonour of Promissory note does not required noting or protest
• C. A Promissory note cannot be made payable to the maker himself
• D. Promissory note cannot be made payable to the bearer

Answer 1

The correct option is A No notice of dishonour of Promissory note is required

• Notice of dishonor is a notice given by the holder of a bill of exchange or promissory note, to a drawer or indorser showing that acceptance or payment has been refused. Notice of dishonor is also known as certificate of protest or certificate of dishonor.
• Protest for dishonour: Foreign bill of exchange must be protested for dishonour when such protest is required to be made by the law of the country where they are drawn, but no such protest is needed in the case of a promissory note.
• A promissory note cannot be made payable the maker himself, while in a bill of exchange to the drawer and payee or drawee and payee may be same person.
• A promissory note cannot be made payable to the bearer, no matter whether it is payable on demand or after a certain time.