764

Signature
essential to
hahility.

Forged or
unauthorised
signature,

DProcuration
signature-.

Terson
sipning as
agent or in
represen-
tative
capacity.

Ch. 31. No. 5.] Bills of Exchange.

 

corporation to make itself liable as drawer, acceptor, or
indorser of a bill unless it is competent to it so to do under
the law for the time being in force relating to corporations.

(2) Where a bill is drawn or indorsed by an infant,
minor, or corporation having no capacity or power to incur
hability 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.

23. No person is liable as drawer, indorser, or acceptor of
a bill who has not signed it as such:

Provided that—

(a2) where a person signs a bill in a trade or assumed
name, he is liable thereon as if he had signed it in his
own name;

(b) the signature of the name of a firm is equivalent
to the signature by the person so signing of the names
of all persons liable as partners in that firm.

24. Subject to the provisions of this Ordinance, where a
signature on a bill is forged or placed thereon without the
authority of the person whose signature it purports to be,
the forged or unauthorised signature is wholly inoperative,
and no right to retain the bill or to give a discharge therefor
or to enforce payment thereof against any party thereto can
be acquired through or under that signature, unless the
party against whom it is sought to retain or enforce payment
of the bill is precluded from setting up the forgery or want
of authority:

Provided that nothing in this section shall affect the
ratification of an unauthorised signature not amounting
to a forgery.

25. A signature by procuration operates as notice that the
agent has but a limited authority to sign, and the principal
is only bound by such signature if the agent in so signing
was acting within the actual limits of his authority.

26. (1) Where a person signs a bill as drawer, indorser,
or acceptor, and adds words to his signature, indicating that
he signs for or on behalf of a principal, or in a representative