alleryStart learning →An instrument made without consideration creates, between original parties:
AA full obligation to pay
BA half obligation to pay
CNo obligation of payment
DA joint obligation to pay
Answer & Solution
Correct answer: C. No obligation of payment
Without consideration there is no obligation of payment between the parties to the transaction itself.
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Related questions
What sets a demand promissory note apart from one payable at a fixed future date?What does a promissory note contain that an IOU lacks?A bill of exchange requires, at its inception, how many parties?A holder in due course must acquire the instrument for consideration:A sum payable may still be 'certain' although it includes:A signs 'I promise to pay B or order Rs.500.' This is:A signed writing 'Mr B I.O.U Rs.1,000' is, under section 4:Where an instrument may be read as a promissory note or as a bill, the holder: