IEA Section 117 — Estoppel of acceptor of bill of exchange, bailee or licensee

Summary

If you accept a bill of exchange, you cannot later claim that the person who wrote or endorsed it had no authority to do so. Similarly, if you are holding someone else’s property as a bailee, or using something under a licence, you cannot deny that the person who gave you the property or permission had the authority to do so at the time it was given.

Official Text

No acceptor of a bill of exchange shall be permitted to deny that the drawer had authority to draw such bill or to endorse it; nor shall any bailee or licensee be permitted to deny that his bailor or licensor had, at the time when the bailment or licence commenced, authority to make such bailment or grant such licence.

Old <-> New Code Mapping

• BSA §123 — Estoppel of acceptor of bill of exchange, bailee or licensee