JAMB - Commerce (2018 - No. 23)

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

Is not bound to renew the note before payment

Can return the goods purchased and refuse to pay

Can refuse to pay on due date since it is only a promise

Is bound to redeem the note for cash on due date

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