(..8 g ..)
KINDS OF INSTRUMENTS
17 & 19
QUESTION BANK.
- 1. Write note on inland and foreign instruments.
- 2. What are the kinds of instrument.
SHORT NOTES.
- Inland instrument.
- Ambiguous instrument.
- Kinds of Bill. Nov. 05.
SYNOPSIS.
KINDS:-
1) Inland Instruments (S. 11):-
2) Foreign instrument (S. 12):-
3) Payable on demand (S. 19):-
4) Ambiguous instrument (S. 17):-
Instruments, i.e. Bills of Exchange, cheques and notes, are of the following kinds:-
1) Inland Instruments[1] (S. 11):-
A Promissory Note, Bill of Exchange or cheque is inland when it is on its face and purports to be both drawn and payable within India.
2) Foreign instrument[2] (S. 12):-
Any instrument which is not drawn, made or made payable in India is foreign.
3) Payable on demand (S. 19):-
A Promissory Note or Bill of Exchange, in which no time for payment is specified, and a cheque is payable on demand, is called payable on demand.
Payable on demand is also called at signs or ‘on presentment’.
4) Ambiguous instrument[3] (S. 17):-
Where an instrument may be construed either as a Promissory Note or a bill, the holder may, at his option, treat it as either, and the instrument shall be thenceforth treated accordingly.
In other words, an instrument that is in form may either be treated as a Bill of Exchange or as a Promissory Note, which is an ambiguous instrument; such an instrument may be treated as either a Bill of Exchange or a Promissory Note.
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[1] देशातर्गत दस्तऐवज. [देश के अंदर चालणेवाला दस्तावेज़।]
[2] परदेशी दस्तऐवज. [विदेशी दस्तावेज।]
[3] संदिग्ध किंवा मोघम दस्ताऐवज. [संदिग्ध या संदिग्ध दस्तावेज।]