A sells a TV to a minor, who pays for it by means of a cheque. A endorses that cheque to X. X takes it…
Under Section 26 of the Negotiable Instruments Act, 1881, a minor may draw, indorse, deliver and negotiate an instrument so as to bind all parties except himself. Since the…
Choose your answer
A sells a TV to a minor, who pays for it by means of a cheque. A endorses that cheque to X. X takes it in good faith and for value. This cheque was dishonoured on presentation. X can enforce payment of the cheque -
Answer and explanation
Correct answer C
Under Section 26 of the Negotiable Instruments Act, 1881, a minor may draw, indorse, deliver and negotiate an instrument so as to bind all parties except himself. Since the minor is not liable, X, a holder in good faith for value, can enforce payment of the dishonoured cheque "Against A only", as A endorsed it.
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