Which of the following is an example of an inland instrument?a)A promissory note made in India and payable in London.b)A bill drawn in India on a person residing in Paris and accepted payable in Paris.c)A cheque drawn in India and made payable in India.d)A promissory note made outside of India and payable outside of India.Correct answer is option 'C'. Can you explain this answer?

Question

Answer

An instrument is considered an inland instrument if it is made or drawn in India and payable in India, or if it is drawn upon a person resident in India, even if payment is to be made outside of India. In this case, a cheque drawn in India and made payable in India satisfies the criteria for an inland instrument.

Answer

< b='' />Inland Instrument Definition< />
An inland instrument refers to a financial document that is drawn, made, or payable within the same country. It does not involve any cross-border transactions or payments. These instruments are regulated by the laws and regulations of the country in which they are issued.

< b='' />Explanation of Options< />
a) A promissory note made in India and payable in London: This option involves a cross-border payment as the promissory note is payable in London. Therefore, it is not an example of an inland instrument.

b) A bill drawn in India on a person residing in Paris and accepted payable in Paris: This option also involves a cross-border transaction as the bill is drawn on a person residing in Paris and payable in Paris. Thus, it is not an example of an inland instrument.

c) A cheque drawn in India and made payable in India: This option meets the criteria of being an inland instrument. The cheque is drawn and made payable within the same country, India. Therefore, it is considered an example of an inland instrument.

d) A promissory note made outside of India and payable outside of India: This option involves a cross-border payment as the promissory note is made and payable outside of India. Hence, it is not an example of an inland instrument.

< b='' />Conclusion< />
Out of the given options, option 'C' is the only example of an inland instrument. It is a cheque drawn and made payable within the same country, India. The other options involve cross-border transactions or payments, which do not meet the criteria of an inland instrument.

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