Section 22

Capacity to incur liability as a party to a bill is co-extensive with capacity to contract:

Provided that nothing in this section shall enable a body corporate to make itself liable as drawer, acceptor, or indorser of a bill unless it is competent to it to do so under the law for the time being in force relating to companies.

Where a bill is drawn or indorsed by a minor or body corporate having no capacity or power to incur liability on a bill, the drawing or indorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.

Bills of Exchange

B.L.R.O. 3/2023 19