The question asks to identify the true statement regarding a bill of exchange.
Analyzing Bill of Exchange Statements
Option 1: Conditional Order
This statement is false. A bill of exchange must contain an unconditional order to pay a certain sum of money. If the order is conditional, the instrument is not a valid bill of exchange.
Option 2: Request to Pay
This statement is technically true, as a bill of exchange contains an order, which is a form of request. However, the defining characteristic is that it's an *unconditional order*. Let's examine other options for a more definitive answer.
Option 3: Bill vs. Promissory Note
This statement is false. A bill of exchange is an order made by one party (drawer) on another (drawee) to pay a third party (payee). A promissory note is a direct promise by one party to pay another party. They are distinct legal instruments.
Option 4: Certain Payee
This statement is true. For a bill of exchange to be valid, the payee (the person or entity to whom the payment is directed) must be clearly identified or ascertainable. The certainty of the payee is a fundamental requirement.
Conclusion
Comparing the options, the most accurate and universally required condition for a bill of exchange among the choices is that the payee must be certain. While it contains an order (a type of request), the certainty of the payee is a non-negotiable legal requirement.
Important Questions from Negotiable instrument Act, 1881
- Which of the following is not true in the context of a promissory note?
- Which of the following is not a negotiable instrument?
- Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
Assertion (A) : A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Reason (R) : Because it is said so under Section 13 of the Negotiable Instruments Act, 1881. - Read Assertion (A) and Reason (R) and answer using code below :
Assertion (A) : Where a bill is unintentionally cancelled by the holder or his agent and the cancellation is not apparent thereon, the bill is discharged.
Reason (R) : Above principle is laid down in Section 82 of the Negotiable Instruments Act.
Code : - Match List – I with List – II and select the correct answer using the codes given below :
List – I List – II i. Inchoate stamped instrument a. Union Bank of India Vs. Ankur Corp. ii. Liability of acceptor of a negotiable instrument b. Section 31 of the Negotiable Instrument Act iii. Liability of an endorser c. Section 35 of the Negotiable Instrument Act. iv. Liability of the drawee of a cheque. d. Section 20 of the Negotiable Instrument Act.
Codes :
