What extent a minor can be party to a negotiable instrument
Answers
According to law, a person, who has not attained adulthood (18 years of age), is a minor. An agreement with a minor is considered void. If a minor makes an agreement by fraud, i.e., by lying about his age & presenting himself as an adult, he can not be sued for damages.
A minor can draw or negotiate instruments (i.e. bill of exchange, Promissory note, Cheque). But he incurs no personal liability in such cases. A minor can be a promisee or payee. He can also become an endorse by transfer of a negotiable instrument.
A minor can be party to a negotiable instrument in matters such as cheque, bill of exchange, Promissory note etc.
However, there is no personal liability incurred in these cases.
A minor can either be a payee or promise.
He can also be endorsed for a transfer under a negotiable instrument.
Every individual is capable to enter a contract and bind in making, drawing, endorsement, acceptance, delivery and the negotiation of any promissory note, cheque or bill of exchanges.