Friday, October 12, 2007

NI Act_Practical Problems_7

"I promise to pay B Rs. 500 and all other sums which shall be due to him." State whether it is promissory note even if the instrument is signed by A.

The instrument in question is not a promissory note since it fails to satisfy one of the essential requirements of a promissory note as per Section 4 of the Negotiable Instruments Act, that is, it should be a promise to pay a certain sum of money. Thus, the amount must be certain or capable of being made certain. Since, the instrument in question lacks this feature-- "Rs. 500 and all other sums which shall be due", the words "all other sums" make the amount indefinite.

No comments: