When sued by a holder in due course, an acceptor for the honour of the drawer cannot deny which matter…
Section 120 extends the estoppel to "an acceptor of a bill of exchange for the honour of the drawer", who cannot deny the validity of the instrument "as originally made or…
Choose your answer
When sued by a holder in due course, an acceptor for the honour of the drawer cannot deny which matter under section 120 of the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer B
Section 120 extends the estoppel to "an acceptor of a bill of exchange for the honour of the drawer", who cannot deny the validity of the instrument "as originally made or drawn" when sued by a holder in due course. Later events such as payment or alteration remain open to him.
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