Under Section 20 of the Negotiable Instruments Act, 1881, the holder of an inchoate stamped instrument…
Section 20 says the signer "thereby gives prima facie authority to the holder thereof to make or complete" a negotiable instrument on the paper, for any amount specified and…
Choose your answer
Under Section 20 of the Negotiable Instruments Act, 1881, the holder of an inchoate stamped instrument has authority to:
Answer and explanation
Correct answer B
Section 20 says the signer "thereby gives prima facie authority to the holder thereof to make or complete" a negotiable instrument on the paper, for any amount specified and not exceeding the amount covered by the stamp. No fresh consent of the signer is needed, but the amount cannot go beyond what the stamp covers.
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