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Saturday, June 18, 2011

Ambiguous Instruments

An instrument, which in form or terms is such that it may either be treated as a bill of exchange or as a promissory note, is an ambiguous instrument. In the following cases, the instrument is taken as ambiguous;
(a) Where drawer and drawee are the same person.
(b) Where drawee is a fictitious person
(c) Where drawee is a person incapable of entering into a contract

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