Contract v A Promissory Note: Kishan v Sudhir
contract clat_pg intermediate mcq_helpI was studying for AILET PG exams and landed on this MCQ: Who is liable in a case where Kishan agrees to lend Rs 5 lakhs to Sudhir on the basis of a promissory note?
A) Kishan only, since it's a contract B) Sudhir only, since he's the promissor C) Both, since it's a contract and a promissory note D) Neither, since it's not a negotiable instrument
My first instinct was to say C) Both, since it's a contract and a promissory note, right? But wait, think about it. Contract law v commercial law, here we go!
What's your answer, please share and why.
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"Maine yeh case padha hai aur mera mazaak hai ki isme judge ne promissory note ki definition bahut sahi ki hai. To, contract v promissory note ka case yeh hai: Kishan ne Sudhir ko 10 lak rupees ka loan diya tha, lekin woh loan ki agreement ko sign nahin karta tha. Court ne kaha ki yeh loan ek promissory note hai, jiski madad se Sudhir ki properties se paisa kiya ja sakta hai.