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      Question

      Under Section 26, a minor drawing or indorsing a

      negotiable instrument:
      A Binds himself and all other parties Correct Answer Incorrect Answer
      B Renders the instrument wholly void Correct Answer Incorrect Answer
      C Cannot draw or indorse any instrument at all Correct Answer Incorrect Answer
      D May bind all parties to the instrument except himself Correct Answer Incorrect Answer
      E Binds only himself but no other party Correct Answer Incorrect Answer

      Solution

      Section 26 states that a minor may draw, indorse, deliver and negotiate a negotiable instrument so as to bind all parties except himself. While a minor lacks capacity to contract and so incurs no personal liability, his participation does not invalidate the instrument or relieve other competent parties. This protects the holder while shielding the minor from liability, a commonly examined principle.

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