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


Question

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

Options

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

The correct answer is D.


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