alleryA Bill of Exchange contains:
AAn unconditional order
BAn unconditional promise
CConditional pay promise
DPledge of goods deed
Answer & Solution
Correct answer: A. An unconditional order
1. Negotiable Instruments Act defines a bill as an instrument in writing with an unconditional ORDER.
2. The order is from the drawer to the drawee/acceptor.
3. A promissory note, by contrast, contains a PROMISE.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §1 ¶2_
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: