The provisions in the Bills of Exchange Act dealing with consumer notes and bills can apply to a promissory note or to a bill of exchange, but not to a cheque because a cheque is never used for credit purposes.

Question

Quizplus · Accepted Answer

The statement is false. Cheques can be used for credit purposes, such as post-dated cheques or cheques issued as a form of payment plan. Therefore, the provisions in the Bills of Exchange Act dealing with consumer notes and bills can apply to cheques as well.

The Provisions in the Bills of Exchange Act Dealing with Consumer