The correct answer is: D. All of these
A promissory note is a written promise to pay a certain sum of money to a specified person or entity on a specified date. A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer. A cheque is a bill of exchange drawn on a bank and payable on demand.
All three of these instruments are negotiable instruments, which means that they can be transferred from one person to another by endorsement and delivery. They are also all considered to be unconditional orders to pay a certain sum, which is why the correct answer is “All of these.”
A promissory note is a written promise to pay a certain sum of money to a specified person or entity on a specified date. The person who makes the promise is called the maker, and the person to whom the promise is made is called the payee. The promissory note must be signed by the maker and must contain an unconditional promise to pay. The amount of money to be paid must be specified, as must the date on which the payment is due.
A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer. The person who gives the bill of exchange is called the drawer, the person to whom it is addressed is called the drawee, and the person to whom the payment is to be made is called the payee. The bill of exchange must be signed by the drawer and must contain an unconditional order to pay. The amount of money to be paid must be specified, as must the date on which the payment is due.
A cheque is a bill of exchange drawn on a bank and payable on demand. The person who draws the cheque is called the drawer, the bank on which the cheque is drawn is called the drawee, and the person to whom the payment is to be made is called the payee. The cheque must be signed by the drawer and must contain an unconditional order to pay. The amount of money to be paid must be specified, as must the date on which the payment is due.
All three of these instruments are negotiable instruments, which means that they can be transferred from one person to another by endorsement and delivery. They are also all considered to be unconditional orders to pay a certain sum, which is why the correct answer is “All of these.”