Question

The undertaking contained in a promissory note, to pay a certain sum of money is:

• A. Conditional
• B. Unconditional
• C. May be conditional or unconditional depending upon the circumstances
• D. All of the above

Hint:

A promissory note is valid only if the promise to pay is unconditional and certain.

Answer 1

The Correct Option is B

Step 1: Promissory note under Negotiable Instruments Act.
Section 4 defines a promissory note as a written instrument containing an unconditional undertaking to pay a certain sum of money.

Step 2: Key feature.
The promise must be absolute and not dependent on any condition or event.

Step 3: Conclusion.
Thus, undertaking is always unconditional.