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'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.
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