27
CurrentCapacity of parties
Part IIBills of exchange
Division 2Capacity and authority of parties
27 Capacity of parties
(1)
Capacity to incur liability as a party to a bill is co‑extensive with capacity to contract:
Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor, or indorser of a bill, unless it is competent to it so to do under the law for the time being in force relating to corporations.
(2)
Where a bill is drawn or indorsed by an infant or corporation having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
This Act’s bill:Second reading speech
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