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