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Under Section 17, an 'ambiguous instrument' (one that may be construed as either a note or a bill):
AIs always a promissory note
BMay be treated by the holder, at his election, as either a promissory note or a bill of exchange
CMust be treated as a cheque
DIs void
Answer & Solution
Correct answer: B. May be treated by the holder, at his election, as either a promissory note or a bill of exchange
Section 17 allows the holder to elect to treat an ambiguous instrument as either a promissory note or a bill of exchange, after which it is treated accordingly.
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