www.Aaptaxlaw.com
 
 
 

Section 19 - Instruments payable on demand, Section 20 - Inchoate stamped instruments : Negotiable Instruments Act 1881

 

 

What are Instruments payable on demand? What is Inchoate stamped instruments? Instruments payable on demand Inchoate stamped instruments are defined under Section 19 and 20 of Negotiable Instruments Act 1881

Section 19 of Negotiable Instruments Act 1881: "Instruments payable on demand"

A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand.

 

Section 20 of Negotiable Instruments Act 1881: "Inchoate stamped instruments"

Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in 14[India], and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount; provided that no person other than a holder in due course shall recover from the person delivering the instrument anything in excess of the amount intended by him to be paid thereunder.

 

Negotiable Instruments Act 1881

CHAPTER II NOTES, BILLS AND CHEQUES

Section 4 - Promissory Note

Section 5 - Bill of exchange

Section 6 - Cheque

Section 7 - Drawer, Drawee

 

 

Section 8 - Holder

Section 9 - Holder in Due Course

Section 10 - Payment in due Course

Section 11 - Inland Instrument

Section 12 - Foreign Instrument

 

 

Section 13 - Negotiable Instrument

Section 14 - Negotiation

Section 15 - Endorsement

Section 16 - Endorsement in blank and in full endorsee

 

 

Section 17 - Ambiguous instruments

Section 18 - Where amount is stated differently in figures and words

Section 19 - Instruments payable on demand

Section 20 - Inchoate stamped instruments

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap