Ambiguous instruments
Full Text
Ambiguous instruments.—Where an instrument may be construed either as a promissory note or bill of exchange, the holder may at his election treat it as either, and the instrument shall be thenceforward treated accordingly.
Plain English Summary
Allows the holder of an ambiguous instrument (construable as either a promissory note or a bill of exchange) to choose how it is treated.
Key Legal Elements
- Applies when an instrument can be construed as either a promissory note or a bill of exchange
- The holder has the right of election to treat it as either
- Once chosen, the instrument must be treated accordingly thereafter
Practical Note
An example of an ambiguous instrument is when a drawer draws a bill on himself, or where the drawee is a fictitious person. Once the holder makes their election, they cannot change it later.
हिंदी पाठ
संदिग्ध लिखत।—जहां किसी लिखत का अर्थ वचन-पत्र या विनिमय-पत्र दोनों के रूप में लगाया जा सकता हो, वहां धारक अपने विकल्प पर उसे किसी भी रूप में मान सकता है, और उसके बाद लिखत के साथ तदनुसार ही व्यवहार किया जाएगा।