The law requires that every party to a negotiable instrument must be capable of contracting according…
Section 26 permits a minor to draw, indorse, deliver and negotiate an instrument so as to bind other parties without binding himself. The minor's incapacity therefore does…
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The law requires that every party to a negotiable instrument must be capable of contracting according to the law of the contract. What happens when a minor becomes party to the instrument as drawer or maker or indorser?
Answer and explanation
Correct answer D
Section 26 permits a minor to draw, indorse, deliver and negotiate an instrument so as to bind other parties without binding himself. The minor's incapacity therefore does not invalidate every competent party's obligation or make him personally liable. This concerns liability on the instrument, rather than a general power of a minor to contract.
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