Question:
Which of the following is not a negotiable instrument?
Which of the following is not a negotiable instrument?
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Negotiable instruments must be freely transferable and guarantee payment; letters of credit are conditional instruments.
Updated On: Sep 18, 2025
- Bill of exchange
- Promissory notes
- Bearer Cheques
- Letter of credit
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The Correct Option is D
Solution and Explanation
Step 1: Recall the definition of negotiable instruments.
- Negotiable instruments are transferable documents that guarantee payment of a specific amount to the bearer or the order of a specified person.
- Examples: Bill of exchange, Promissory notes, Cheques.
- Letter of credit is a banking instrument used in trade, but it is not transferable in the sense of negotiable instruments.
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