Q.Under the Negotiable Instruments Act, 1881, a bill of exchange payable otherwise than on demand is entitled to how many days of grace?
Option (c) is correct. Under Section 22 of the Negotiable Instruments Act, 1881, every bill of exchange (and promissory note) that is not payable on demand is entitled to three days of grace — three extra days added to the nominal term before the bill's actual due date (date of maturity) is reached. Options (a), (b) and (d) — 1, 2 or 5 days — are simply not the figure fixed by the Act; three days is the specific, fixed statutory allowance, and it applies uniformly regardless of the bill's tenor (whether drawn for 1 month or 12 months). A bill payable 'on demand', 'at sight' or 'on presentment' gets no days of grace at all, since it is meant to be paid immediately on presentation.
(c) 3 days — the statutory days of grace under Section 22, Negotiable Instruments Act, 1881, for any bill not payable on demand.
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