Question

If an instrument may be construed either as promissory note or bill of exchange, it is:

• A. a valid instrument
• B. an ambiguous instrument
• C. a returnable instrument
• D. none of the above

Hint:

Ambiguous instruments are those that may be construed as either promissory notes or bills of exchange.

Answer 1

The Correct Option is B

Step 1: Negotiable Instruments Act.
When an instrument can be interpreted as either a promissory note or a bill of exchange, it creates uncertainty in its nature.
Step 2: Classification.
Such instruments are classified as “ambiguous instruments” under the Negotiable Instruments Act, 1881.
Step 3: Conclusion.
Thus, option (b) is correct.