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      Question

      An instrument which is vague and cannot be clearly

      identified either as a bill of exchange, or as a promissory note, is called as:
      A Bearer instrument Correct Answer Incorrect Answer
      B Ambiguous instrument Correct Answer Incorrect Answer
      C Order instrument Correct Answer Incorrect Answer
      D Inland instrument Correct Answer Incorrect Answer

      Solution

      As per Section 17 of the Negotiable Instruments Act, 1881, an ambiguous instrument is one which may be construed as either a bill of exchange or a promissory note. The holder may treat it as either, at their option.

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