Start learning →

'Mr. B, I.O.U. Rs 1,000' is:

AA valid cheque
BA valid promissory note
CA bill of exchange
DNot a promissory note, being a mere acknowledgement of debt with no promise to pay
Answer & Solution
Correct answer: D. Not a promissory note, being a mere acknowledgement of debt with no promise to pay
An I.O.U. merely acknowledges a debt without an express undertaking to pay it is not a promissory note.
Practise this question with Quill — CA Foundation →

Keep practising Negotiableinstruments

Browse all Negotiableinstruments questions for CA Foundation, or explore more Businesslaw topics.

Start a Negotiableinstruments lesson →
Related questions
CA Foundation · Businesslaw · Negotiable InstrumentsUnder Section 63, when a bill is presented to the drawee for acceptance, he may be allowedA 'foreign instrument' is:An inland instrument that is subsequently indorsed in a foreign country:Under Sections 11-12, an 'inland instrument' is one drawn or made in India and:An 'order instrument' is negotiated by:In a cheque, the drawee is always:A bill of exchange has three parties, namely: