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MGT611 GDB Spring 2019 Solution & Discussion

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MGT611 - Business & Labor Law Due date Monday, July 29, 2019

Based on the provisions of Negotiable Instruments Act, 1881 briefly explain whether the following are promissory notes or not.

  1. On demand, I promise to pay Sonu or order Rs. 5,000, for value received.
  2. I promise to pay Adil or order Rs. 5,000 and 500 shares of Sigma Limited.
  3. I promise to pay Mahi or order Rs. 5,000 with interest calculated at quarterly rests.
  4. I promise to pay you or your successors on demand Rs. 10,000.
  5. I am liable to pay Ahmad Rs. 5,000.

Important Instructions:

  • Your discussion must be based on logical aspects of the requirements of the topic with proper justification.
  • Use the font style “Times New Roman” and font size “12”.
  • Your answer should be relevant to the topic i.e. clear and concise.
  • Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

#MGT611 GDB Idea Sol 2019

1. Valid 
2. Valid
3. Not a valid promissory note
4. Valid
5. Not a valid promissory note (just a promise)

#3 not 100% confirm.

On demand, I promise to pay Sonu or order Rs. 5,000, for value received.
Answer: This is a valid promissory note.
I promise to pay Adil or order Rs. 5,000 and 500 shares of Sigma Limited.
Answer: This is a valid promissory note.
I promise to pay Mahi or order Rs. 5,000 with interest calculated at quarterly rests.
Answer: This is non-promissory note.
I promise to pay you or your successors on demand Rs. 10,000.
Answer: This is a valid promissory note.
I am liable to pay Ahmad Rs. 5,000.
Answer: This is not a promissory note because this is just a simple promise.

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