Question

4
.
The payment date after adding 3 days of
grace period is known as
a. The legal due date
b. The nominal due date
c. Days of grace
d. Date of drawing​

Answer 1

Answer:

The payment date after adding 3 days of grace period is known as a. The legal due date.

Legal due date:

• The date on which the payment of the bill becomes due is called the due date or date of maturity.
• While calculating the due date, it is necessary to add three days to the period of the bill.
• These three days are called 'days of grace.'
• The date which is arrived at after adding three days of grace to the nominal due date is called legal due date.
• The legal due date is calculated as follows: legal  due date = date of bill + period of bill + 3 grace days.

Therefore, the payment date after adding three days of grace period is known as the legal due date.

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Answer 2

Answer:

The correct answer is option (a) The Legal Due Date.

Explanation:

The Legal Due Date-

• A bill of exchange is a negotiable instrument.
• A bill of exchange, according to the Negotiable Instruments Act of 1881, is "an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument."
• In the case of a Bill of Exchange, the 'Legal Due Date' is determined by adding three days of grace to the Nominal Due Date.

Hence, we can conclude that the payment date after adding 3 days of

grace period is known as The legal due date.

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