alleryStart learning →Does a general authority to transact business empower an agent to indorse bills?
AYes, for cheques only
BYes, if the bill is small
CNo, it does not apply
DYes, in every case
Answer & Solution
Correct answer: C. No, it does not apply
Section 27 states that a general business authority does not confer power to accept or indorse bills so as to bind the principal.
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Related questions
The Negotiable Instruments Act was passed as Act No. 26 of the year:The 2002 amendment of the Act inserted new sections numbered:Criminal liability for cheque dishonour entered the Act through an amendment of:Interim compensation in cheque dishonour cases was added by the Act of:Interim compensation under Section 143A must ordinarily be paid within:Interim compensation under Section 143A cannot exceed what share of the cheque?Cheque dishonour trials under the Act should aim to end within:Which court may try a Section 138 offence?