The correct answer is: A. a-1, b-2, c-3
A cheque is a written order to a bank to pay a specified amount of money to a named person or bearer. It must be signed by the drawer, who is the person who is ordering the payment.
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. It is always drawn on a banker.
A promissory note is an unconditional written promise to pay a specified amount of money to a named person or bearer on demand or at a fixed or determinable future time. It must contain an express promise to pay.
Here is a more detailed explanation of each option:
- a-1. Cheque must be signed by the drawer. This is a requirement of the Negotiable Instruments Act, 1881. The drawer is the person who is ordering the payment. The signature of the drawer is necessary to make the cheque valid.
- b-2. Bill of exchange is always drawn on a banker. This is also a requirement of the Negotiable Instruments Act, 1881. A bill of exchange is a written order to a bank to pay a specified amount of money. It is always drawn on a banker because the bank is the one who will ultimately make the payment.
- c-3. Promissory note must contain an express promise to pay. This is also a requirement of the Negotiable Instruments Act, 1881. A promissory note is an unconditional written promise to pay a specified amount of money. It must contain an express promise to pay in order to be valid.