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    • Question

      If the amount payable on a negotiable instrument is

      stated differently in figures and in words, Section 18 provides that:
      A The amount stated in figures shall prevail Correct Answer Incorrect Answer
      B The instrument becomes void for uncertainty Correct Answer Incorrect Answer
      C The amount stated in words shall be the amount payable Correct Answer Incorrect Answer
      D The lower of the two amounts shall be payable Correct Answer Incorrect Answer
      E The holder may choose either amount Correct Answer Incorrect Answer

      Solution

      Section 18 expressly provides that if the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid. This rule resolves the conflict in favour of the words, not the figures, and does not render the instrument void. It is a frequently tested provision in banking examinations.

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