Which of the following statements is true of a negotiable instrument?
A) It should be signed by the payee.
B) It need not state a fixed amount of money.
C) It should not require any undertaking other than the payment of money.
D) It can be either written or oral.

Question

Quizplus · Accepted Answer

A negotiable instrument should not require any undertaking other than the payment of money. This means that the instrument should not contain any conditions or promises other than the payment of a specified amount. Option A is incorrect, as a negotiable instrument should be signed by the maker or drawer, not the payee. Option B is also incorrect, as a negotiable instrument must state a fixed amount of money, which cannot be altered without invalidating the instrument. Option D is incorrect, as a negotiable instrument must be in writing, according to the Negotiable Instruments Act, 1881.

Which of the Following Statements Is True of a Negotiable