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A minor is the payee of an order cheque. He endorses it in full to his father, delivers it to him, and…

Section 26 of the Negotiable Instruments Act, 1881 permits a minor to endorse and deliver a negotiable instrument so as to bind the other parties without binding himself.…

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A minor is the payee of an order cheque. He endorses it in full to his father, delivers it to him, and the father duly presents it for payment. The cheque is otherwise payable. The drawee refuses solely because the endorser is a minor. What effect does the minor’s age have on the endorsement?

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Answer and explanation

Correct answer A

Section 26 of the Negotiable Instruments Act, 1881 permits a minor to endorse and deliver a negotiable instrument so as to bind the other parties without binding himself.

The drawee therefore cannot rely on minority alone to reject this otherwise valid endorsement.

Option feedback

Option A

Section 26 permits a minor to endorse and deliver the instrument without binding himself.

Option B

Section 26 expressly allows endorsement by a minor.

Option C

The statute does not defer the effect of the endorsement until majority.

Option D

The minor’s personal liability is not a condition of an effective endorsement.

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