Commerce JAMB

A company which issues a promissory note in lieu of payment for goods purchased

A. Is not bound to renew the note before payment
B. Can return the goods purchased and refuse to pay
C. Can refuse to pay on due date since it is only a promise
D. Is bound to redeem the note for cash on due date

Correct Answer:

Option D – Is bound to redeem the note for cash on due date

Explanation

A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money.

the company is bound to redeem the cash on the due date

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