CAF-4 · Chapter 14 · Question 3 of 8
Evaluate the validity of the following statement written on a document: 'I promise to pay Khalid or order Rs. 12,000 six days after Saad’s death.'
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Valid, because death is an event which is certain to happen.
Explanation
An undertaking is considered unconditional if it depends on an event which, according to the ordinary expectation of mankind, is certain to happen (like death), even if the exact time is uncertain.
More Negotiable instruments MCQs
- Q5Evaluate the validity of this note: 'I promise to pay Adil or order Rs. 5,000 and 500 shares of Sigma Limited.'
- Q6In the context of a cheque, who is the 'drawee'?
- Q7Mujahid owes Rs. 500,000 to Shoaib and wants to issue a time instrument to settle the debt. Which document should Mujahid draft and sign?
- Q8Is the statement 'Nauman, I shall be highly obliged if you make it convenient to pay Rs. 100,000 to Mahreen' a valid bill of exchange?
- Q1Which of the following acts contains the law relating to promissory notes, bills of exchange, and cheques in Pakistan?