Under the Negotiable Instruments Act, 1881, Which of the following is not competent to draw a valid…
An adjudicated insolvent lacks the capacity to contract and so cannot validly draw a negotiable instrument, while a company or a duly authorised agent can validly do so on…
Choose your answer
Under the Negotiable Instruments Act, 1881, Which of the following is not competent to draw a valid negotiable instrument?
Answer and explanation
Correct answer A
An adjudicated insolvent lacks the capacity to contract and so cannot validly draw a negotiable instrument, while a company or a duly authorised agent can validly do so on the principal's behalf.
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