Economics · Economy

Under the Negotiable Instruments Act, 1881, which of the following is NOT a necessary condition for a drawee bank to be legally bound to make payment on a cheque?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1There must be no legal restraint or court order prohibiting the bank from making the payment.
2The cheque must be endorsed by a third party before presentation.✓
3There must be sufficient funds applicable to the payment of such cheque in the account.
4The cheque must be properly drawn and signed by the drawer.

Correct answer

The cheque must be endorsed by a third party before presentation.

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