New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    A promissory note or bill of exchange, dated 31st August, 1878, is made payable three months after date. The instrument is at maturity on the

    A 3rd September 1878 Correct Answer Incorrect Answer
    B 3rd December 1878 Correct Answer Incorrect Answer
    C 2nd November 1878 Correct Answer Incorrect Answer
    D 2nd December 1878 Correct Answer Incorrect Answer

    Solution

     Illustration (c ) to Section 23 of Negotiable Instrument Act - A promissory note or bill of exchange, dated 31st August, 1878, is made payable three months after date. The instrument  is at maturity on the 3rd December, 1878. Section 23- In calculating the date at which a promissary note or bill of exchange, made payable a stated number of months after date or after sight, or after a certain event, is at maturity, the period stated shall be held to terminate on the day of the month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight, or noted for non-acceptance, or protested for non-acceptance, or the event happens, or, where the instrument is a bill of exchange made payable a stated number of months after sight and has been accepted for honour, with the day on which it was so accepted. If the month in which the period would terminate has no corresponding day, the period shall be held to terminate on the last - day of such month.

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