The question asks to identify the incorrect statement about cheques among the given options.

Identifying the Incorrect Cheque Statement

We need to evaluate each statement to determine which one is factually incorrect regarding the nature and properties of a cheque.

Analysis of Statements:

• Statement 1: "A cheque is a bill of exchange, but every bill of exchange is not a cheque." This statement is correct. A cheque is a specific type of bill of exchange that is drawn upon a bank and is payable on demand. However, not all bills of exchange meet these criteria.
• Statement 2: "A cheque is always payable on demand." This statement is correct. By definition, cheques are instruments payable immediately upon presentation to the bank.
• Statement 3: "A cheque is a conditional order from the drawer of a cheque to the drawee bank to make payment of money only." This statement is incorrect. A cheque is legally defined as an unconditional order. The order to the bank to pay is not subject to any conditions. While payment depends on sufficient funds, the order itself is unconditional. The inclusion of the word "conditional" makes this statement factually wrong.
• Statement 4: "A post-dated cheque cannot be considered as a valid cheque till the date of maturity." This statement is debatable but often considered correct in practice regarding *payability*, though the instrument itself is valid upon creation. However, compared to statement 3's clear factual inaccuracy regarding the nature of the order (conditional vs. unconditional), statement 3 is the most definitively incorrect description. A post-dated cheque *is* a valid cheque, but its date of payment is future. The wording "cannot be considered as a valid cheque" is technically incorrect, as it is valid but not yet payable. However, focusing on the definitive error in Statement 3 is key.

Conclusion on Incorrect Statement:

Statement 3 incorrectly describes a cheque as a "conditional order." Since cheques are, by definition, unconditional orders to a bank, this statement is false.