Question
Amit signs an instrument in the following terms "I
promise to pay Babu Rs. 10,000 and all other suns which shall be due to him". What is the legal status of above instrument?Solution
According to Section 4 of Negotiable Instrument Act, a promissory note is: • An instrument (not being bank note or currency note) in writing • Containing an unconditional undertaking • Signed by the maker • To pay a certain sum of money only to or to the order of, a certain person, or to the bearer of the instrument. In question, the sum is not certain as it is mentioned “Rs 10000 and all other sums which shall be due to him”. A Bill of Exchange has three parties. An inchoate instrument is an incomplete instrument
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