298
Capacity of parties.
*
Signature essential to liability.
Forged or unauthorized signature.
Procuration signature.
No. 3 of 1885.
BILLS OF EXCHANGE.
(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and unconditional delivery by him is presumed until the contrary is proved.
Capacity and authority of parties.
22.-(1) Capacity to incur liability as a party to a bill is co-extensive with capacity to contract:
Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it to do so under the law relating to corporations.
(2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
23. No person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such: Provided that-
(1) where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name;
(2) the signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.
24. Subject to the provisions of this Ordinance, where a signature on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and no right to retain the bill, or to give a discharge therefor, or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority:
Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.
25. A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.
* As amended by No. 62 of 1911.
298
Capacity of parties.
*
Signature essential to liability.
Forged or unauthorized
signature.
Procuration signature.
No. 3 of 1885.
BILLS OF EXCHANGE.
(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor, or indorser, a valid and un- conditional delivery by him is presumed until the contrary is proved.
Capacity and authority of parties.
22.-(1) Capacity to incur liability as a party to a bill is co- extensive with capacity to contract:
Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it to do so under the law relating to corporations.
(2) Where a bill is drawn or indorsed by an infant, minor, or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
23. No person is liable as drawer, indorser, or acceptor of a bill who has not signed it as such: Provided that-
(1) where a person signs a bill in a trade or assumed name, he is liable thereon as if he had signed it in his own name;
(2) the signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.
24. Subject to the provisions of this Ordinance, where a signa- ture on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or un- authorised signature is wholly inoperative, and no right to retain the bill, or to give a discharge therefor, or to enforce payment thereof against any party thereto can be acquired through or under that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority:
Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.
25. A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.
* As amended by No. 62 of 1911.
I
k
01
Vi
bi
сс
di
422
W
th
at
de
No comments yet.
Private notes are available after approval.