CAF-4 · Chapter 14 · Question 4 of 8
Which of the following phrases makes a promissory note INVALID?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 'I promise to pay Zubair on demand Rs. 6,000 at my convenience.'
Explanation
An undertaking to pay 'at my convenience' is a conditional promise, destroying the certainty of the instrument and making the promissory note invalid.
More Negotiable instruments MCQs
- 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?
- Q2A promissory note is defined as an instrument in writing containing an unconditional ________ to pay a certain sum of money.