On dishonour, notice of dishonour need not be given to the:
AThe endorser of the bill
BMaker of the promissory note
CThe drawer of the bill
DThe first endorsee of it
Answer & Solution
Correct answer: B. Maker of the promissory note
The maker of the dishonoured promissory note, the drawee and the acceptor are exempt from receiving notice.
Keep practising Bills of Exchange and Promissory Notes
Browse all Bills of Exchange and Promissory Notes questions for CA Foundation, or explore more Accounting topics.
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: