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Under Section 26 of the Negotiable Instruments Act, 1881, if a minor draws, indorses, delivers, or…

Under Section 26 of the Negotiable Instruments Act, 1881 ('Capacity to make, etc., promissory notes, etc.'), every person capable of contracting, according to the law to…

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Under Section 26 of the Negotiable Instruments Act, 1881, if a minor draws, indorses, delivers, or negotiates a negotiable instrument, such instrument binds:

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Correct answer C

Under Section 26 of the Negotiable Instruments Act, 1881 ('Capacity to make, etc., promissory notes, etc.'), every person capable of contracting, according to the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance, indorsement, delivery and negotiation of a promissory note, bill of exchange or cheque. The second paragraph of Section 26 specifically provides: 'A minor may draw, indorse, deliver and negotiate such instruments so as to bind all the parties except himself.'

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Option A

Incorrect. Because a minor lacks contractual capacity under Section 11 of the Indian Contract Act, 1872, a minor incurs no personal liability on a negotiable instrument under Section 26 of the Negotiable Instruments Act, 1881.

Option B

Incorrect. This reverses the statutory rule: under Section 26 of the Negotiable Instruments Act, 1881, the minor is exempt from liability while all other parties are bound.

Option C

Correct. Section 26 of the Negotiable Instruments Act, 1881 expressly provides that 'A minor may draw, indorse, deliver and negotiate such instruments so as to bind all the parties except himself.'

Option D

Incorrect. The participation of a minor does not invalidate the negotiable instrument as against other competent parties; under Section 26, it binds all parties except the minor.

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