BILLS OF EXCHANGE:
No. 3 of 1885.
289
(a) in order to be effectual, must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be;
(b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill:
but if the bill is in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him, so as to make them liable to him, is conclusively presumed.
(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
BILLS OF EXCHANGE:
No. 3 of 1885.
289
(a) in order to be effectual, must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be;
(b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill:
but if the bill is in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him, so as to make them liable to him, is conclusively presumed.
(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 Capacity of 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.
parties.
23. No person is liable as drawer, indorser, or acceptor of Signature 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.
essential to liability.
24. Subject to the provisions of this Ordinance, where a Forged or signature on a bill is forged or placed thereon without the unauthorised authority of the person whose signature it purports to be, signature. 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
No comments yet.
Private notes are available after approval.