Report No. 11

13. "Certain sum", "unconditional", "certain person" and fictitious payee.-

In an instrument-

(a) the sum payable may be "certain" although it includes future interest or is payable at an indicated rate of exchange, or is payable at the current rate of exchange, and although it is to be paid in stated instalments with a provision that upon default in payment of an instalment or interest, the whole shall become due;

[Section 5, para. 31

(b) an undertaking or order to pay may be "unconditional" although the time for payment of the amount or any instalment thereof is expressed to be on the lapse of a certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain;

[Section 5, para. 2]

(c) an order to pay out of a particular fund is not unconditional; but an unqualified order to pay, coupled with-

(i) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or

(ii) a statement of the transaction which gives rise to the instrument, is unconditional;1

$1 $2

(d) a person may be a 'certain person', although he is misnamed or designated by description only, provided the person intended can reasonably be ascertained from the instrument;2

[Section 5, para. 4]

(e) where the payee is a fictitious or non-existing person, the instrument may be treated as payable to bearer;3

1. See section 3(3), BEA.

2. See section 7(1), BEA.

3. See section 7(3), BEA.