Question
Legal Studies Question on Laws of Contract
Which of the following is not a negotiable instrument as per the Negotiable Instruments Act, 1881?
A
Promissory note
B
Hundi
C
Bill of exchange
D
Cheque
Answer
Hundi
Explanation
Solution
The Negotiable Instruments Act, 1881, officially recognizes promissory notes, bills of exchange, and cheques as negotiable instruments, Hundi,although commonly used in practice, is not formally recognized as a negotiable instrument under this Act.