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CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES

Section 27: Agency

The Negotiable Instruments Act, 1881

Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or be bound by a duly authorized agent acting in his name.

A general authority to transact business and to receive and discharge debts does not confer upon an agent the power of accepting or indorsing bills of exchange so as to bind his principal.

An authority to draw bills of exchange does not of itself import an authority to indorse.

Questions on this section

1 question in 2 of our papers cite Section 27.

Practise questions on Negotiable Instruments Act, 1881