Question

Which of the following condition about exchange is not true?

Answer 1

Answer:

According to Negotiable Instruments Act, 1881, a bill of exchange is defined as 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. The following are the features of a bill of exchange:

1. A bill of exchange must be in writing.

2. It is an order to make payment.

3. The order to make payment is unconditional.

4. The maker of the bill of exchange must sign it.

5. The payment to be made must be certain.

6. The date on which payment is made must also be certain.

Hence, all the above statements are true about a bill of exchange, except it is a conditional order to pay