New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

      If a minor draws, indorses, delivers or negotiates an

    instrument, such instrument binds
    A All parties including minor Correct Answer Incorrect Answer
    B Only the minor and not other parties Correct Answer Incorrect Answer
    C All parties except the minor Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    Section 26 of NI Act 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. Minor—A minor may draw, indorse, deliver and negotiate such instrument so as to bind all parties except himself. Nothing herein contained shall be deemed to empower a corporation to make, indorse or accept such instruments except in cases in which, under the law for the time being in force, they are so empowered.  

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