CAF-4 · Chapter 14 · Question 8 of 8
Is 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?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) No, because it is merely a request and lacks an unconditional order.
Explanation
A bill of exchange must contain an unconditional order to pay. Using language like 'I shall be highly obliged if you make it convenient' constitutes a request, not an order.
More Negotiable instruments MCQs
- 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.'
- Q6In the context of a cheque, who is the 'drawee'?