Question

A sells a TV to a minor, who pays for it by means of a cheque. A indorses that cheque to X. X takes it in good faith for value. This cheque enforce payment of the cheque:

A sells a TV to a minor, who pays for it by means of a cheque. A indorses that cheque to X. X takes it in good faith for value. This cheque enforce payment of the cheque:

.

Option A: Against Minor
Option B: Against Minor and A
Option C: Against A only
Option D: Cannot enforce against any body

Correct Answer

Option: c

Explanation

Payment can’t be enforced a minor. But the instrument can be against against A. Refer Sections 9 and 26 of the Negotiable Instruments Act stated below: 9. Holder in due course. “Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. 26. Capacity to make, etc., promissory notes, etc. 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 instruments 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.

Sample Mock Tests for Practice

THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 03 Q. NO. 81 TO 120)

UTTARAKHAND LOWER JUDICIAL SERVICES 2018

CHHATTISGARH LOWER JUDICIAL SERVICES 2020

THE CHHATTISGARH RENT CONTROL ACT, 2011 (PAPER 01 Q. NO. 1 TO 8)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 07 Q. NO. 241 TO 280)

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 07 Q.NO. 241 TO 280)

THE HINDU SUCCESSION ACT, 1956 (PAPER 02 Q. NO. 36 TO 65)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 07 Q. NO. 211 TO 245)

RAJASTHAN LOWER JUDICIAL SERVICES 2019

THE SPECIAL MARRIAGE ACT, 1954 (PAPER 01 Q. NO. 1 TO 10)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 03 Q. NO. 71 TO 105)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 16 Q. NO. 601 TO 640)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 08 Q. NO. 281 TO 320)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 15 Q. NO. 491 TO 525)

THE COMMERCIAL COURTS ACT, 2015 (PAPER 01 Q. NO. 1 TO 12)

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AILET – National Law University Delhi Entrance Test (NLU 2020)

MADHYA PARDESH LOWER JUDICIAL SERVICES 2019

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2016-2

UTTARAKHAND LOWER JUDICIAL SERVICES 2019

MADHYA PARDESH LOWER JUDICIAL SERVICES 2001

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 09 Q. NO. 321 TO 360)

AIBE-XIII-2018-II (BCI-DEC-2018-SET-A) (ALL INDIA BAR EXAM 2018-II)

DELHI LOWER JUDICIARY 2008

RAJASTHAN LOWER JUDICIAL SERVICES 2011

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 01 Q. NO. 1 TO 40)

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 03 Q.NO. 81 TO 120)

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2011

THE CONSTITUTION OF INDIA, 1949 (PAPER – 02 Q. NO. 36 TO 70)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 12 Q. NO. 386 TO 420)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 06 Q. NO. 176 TO 210)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 01 Q. NO. 1 TO 35)