Sec. 3. When promise is unconditional. - Act 2031

An unqualified order or promise to pay is unconditional within the meaning of this Act though coupled with:

(a) An indication of a particular fund out of which reimbursement is to be made or a particular account to be debited with the amount; or
(b) A statement of the transaction which gives rise to the instrument.

But an order or promise to pay out of a particular fund is not unconditional. (Negotiable Instruments Law; Act 2031)

Popular Posts