Under section 17 of the Negotiable Instruments Act, 1881, the holder of an instrument that can be…
Section 17 of the Negotiable Instruments Act, 1881 governs an ambiguous instrument. Once the holder elects to treat it as a promissory note or a bill of exchange, it is…
Choose your answer
Under section 17 of the Negotiable Instruments Act, 1881, the holder of an instrument that can be construed as either a promissory note or a bill of exchange may elect to treat it as either. What is such an instrument called?
Answer and explanation
Correct answer B
Section 17 of the Negotiable Instruments Act, 1881 governs an ambiguous instrument. Once the holder elects to treat it as a promissory note or a bill of exchange, it is treated accordingly.
Option feedback
Option A
Section 20 addresses a signed and delivered stamped instrument that is blank or incomplete.
Option B
Section 17 calls this an ambiguous instrument and gives the holder the election.
Option C
Section 11 classifies inland instruments by where they are made or drawn and where payable or on whom drawn.
Option D
Crossing concerns cheques, including drafts to which the chapter applies under section 131A.
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