If there was delivery and the same was authorized it

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If there was delivery and the same was authorized – it can still be shown that the delivery was c.1. conditional; (Note: It is the DELIVERY that is conditional and not the payment of the sum involved in the instrument, otherwise the note is non-negotiable) c.2. for a special purpose only and not for the purpose of transferring property in the instrument. When the instrument is in the possession of a HOLDER in DUE COURSE (Section 52, NIL) the presumption of valid delivery by all prior parties is CONCLUSIVELY PRESUMED – it cannot be rebutted by evidence to the contrary. “Where the instrument is in the hands of a holder in due course, a valid delivery thereof by all parties to him is conclusively presumed” - Section 16. It is also known as “want of delivery of mechanically complete instrument” it is merely a personal defense because it can only be interposed to immediate or remote parties who are NOT holders in due course. N.B. Conclusive presumption of delivery cannot be applied to INCOMPLETE and UNDELIVERED instruments (Section 15, NIL) for the reason that in this case want of delivery is a REAL DEFENSE – it can be interposed as against ANY HOLDER – whether holder in due course or not holder in due course. Section 52, NIL – Who are holders in due course. A holder in due course is a holder who has taken the instrument under the following conditions: a. That it is complete and regular upon its face; b. That he became the holder of it before it was overdue, and without notice that it had been previously dishonored, if such was the fact; c. That he took it in good faith and for value;
d. That at the time it was negotiated to him, he had no notice of any infirmity in the instrument or defect in the title of the person negotiating it. Section 17. Construction where the instrument is ambiguous. Where the language of the instrument is ambiguous or there are omissions therein, the following rules of construction apply: a. Where the sum payable is expressed in words and also in figures and there is a discrepancy between the two, the sum denoted by the words is the sum payable; but if the words are ambiguous or uncertain, reference may be had to the figures to fix the amount; b. Where the instrument provides for the payment of interest, without specifying the date from which interest is to run, the interest runs from the date of the instrument, and if the instrument is undated, from the issue thereof; c. Where the instrument is NOT dated, it will be dated as of the time it was issued; d. Where there is a conflict between the written and printed provisions of the instrument, the written provisions prevail; e. Where the instrument is so ambiguous that there is doubt whether it is a bill or note, the holder may treat it as either at his election; f. Where a signature is so placed upon the instrument that it is not clear in what capacity the person making the same intended to sign, he is to be deemed an indorser; (NOTE: it applies only to cases of doubt arising out of the LOCATION of the signature).

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