Negotiable Instruments Act Section 122 — Estoppel against denying signature or capacity of prior party

CHAPTER XIII S P E C I A L R U L E S O F E V I D E N C E

General

Summary

An endorser of a negotiable instrument cannot, in a lawsuit brought by a later holder, deny that a previous party signed the instrument or had the legal ability to enter into a contract. This means the endorser is bound by the validity of the earlier signatures and capacities when the instrument is presented by someone who received it after them.

Official Text

No indorser of a negotiable instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to contract of any prior party to the instrument.