Incomplete / Inchoate Instrument {Sec. 20}
Conditions for an inchoate instrument:-
(a) A person signs a negotiable instrument.
(b) The negotiable instrument is stamped.
(c) The negotiable instrument is either wholly blank or is partially blank.
(d) The person signing such negotiable instrument delivers it to another person.
Legal effect:- The holder gets a prima facie authority to make or complete the negotiable instrument.
Liability on an inchoate instrument:-Rights of a person to whom an inchoate instrument is delivered – He can recover only such amount as he was authorized to fill. Rights of holder in due course – He can recover the whole amount stated in the instrument, but not exceeding the amount covered by the stamps.
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