CAF-4 · Chapter 14 · Question 7 of 8
Mujahid owes Rs. 500,000 to Shoaib and wants to issue a time instrument to settle the debt. Which document should Mujahid draft and sign?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A promissory note containing a promise to pay five months after date.
Explanation
To settle the debt with a time instrument, Mujahid would issue a promissory note as a time instrument (e.g., 'Five months after date I promise to pay...') to Shoaib.
More Negotiable instruments MCQs
- Q1Which of the following acts contains the law relating to promissory notes, bills of exchange, and cheques in Pakistan?
- Q2A promissory note is defined as an instrument in writing containing an unconditional ________ to pay a certain sum of money.
- Q3Evaluate 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…
- Q4Which of the following phrases makes a promissory note INVALID?
- Q5Evaluate the validity of this note: 'I promise to pay Adil or order Rs. 5,000 and 500 shares of Sigma Limited.'