Section 70(b) provides that the ‘interpretation’ of the contracts of the drawer, indorser and

Question

Section 70(b) provides that the ‘interpretation’ of the contracts of the drawer, indorser and

acceptor is determined by the lex loci contractus. Regrettably the meaning of
‘interpretation’ is unclear. Does it include the essential validity of the negotiation of the
instrument? It is uncertain what is included in this category. For instance, the question
whether a signatory of the bill need indicate that he signs in a representative capacity to
avoid personal liability was treated in theBedit Properties case, as a matter of form, when just such a question would naturally be
considered one of ‘interpretation. provide summary

Answer 1

In section 70(b) of the law, the 'interpretation' of contracts involving the drawer, indorser, and acceptor is determined by the lex loci contractus. However, it is not clear what exactly is included in the term 'interpretation'. The essential validity of the negotiation of the instrument is a gray area, as it is uncertain whether it falls under this category. One example is the question of whether a signatory needs to indicate signing in a representative capacity to avoid personal liability, which was considered a matter of form in the Bedit Properties case, but could be seen as a matter of interpretation. The definition of 'interpretation' is unclear and can include various aspects of contract negotiation and validity.