Question

How many parties are there in promissory note?

• A. 1
• B. 2
• C. 3
• D. 4

Hint:

Focus on the core parties in negotiable instruments for clarity.

Answer 1

The Correct Option is B

Step 1:
A promissory note involves two parties: the Maker (who promises to pay) and the Payee (to whom the payment is promised).
Step 2:
Unlike a bill of exchange, it does not involve a drawee in the initial agreement.
Step 3:
Therefore, the correct option is (B) 2.