Multiple choice

Where an instrument may be construed either as a promissory note or a bill of exchange,

  1. it will be treated as a promissory note

  2. it will be treated as a bill of exchange

  3. the holder may, at his election, treat it as either a bill of exchange or a promissory note

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Where an instrument owing to its faulty drafting may be construed either as a promissory not or a bill of exchange is known as an ambiguous instrument. The holder of such instrument may, at his election, treat it as either a bill of exchange or a promissory note.

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