Under Section 20 of the Negotiable Instruments Act, 1881, the person signing an inchoate stamped…
Section 20 makes the signer liable on the completed instrument, in the capacity in which he signed, "to any holder in due course for such amount". A holder who is not a…
Choose your answer
Under Section 20 of the Negotiable Instruments Act, 1881, the person signing an inchoate stamped instrument is liable to:
Answer and explanation
Correct answer C
Section 20 makes the signer liable on the completed instrument, in the capacity in which he signed, "to any holder in due course for such amount". A holder who is not a holder in due course cannot recover more than the amount the signer intended, so liability to every holder for the full amount is wrong.
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