Negotiable Instruments Act Section 26 — Capacity to make, etc., promissory notes, etc

CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.

General

Summary

Anyone who is legally capable of making a contract can sign, create, or handle a promissory note, bill of exchange, or cheque, and that person becomes bound by those actions. A minor can also draw, sign, deliver, or transfer such an instrument, but this only binds the other parties involved, not the minor themselves. This section does not give a corporation any new power to make, sign, or accept these instruments unless the law already allows it to do so.

Official Text

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.