General Studies · Business Law
'A' sells a mobile phone to 'B', a minor, who pays for it by drawing a cheque. 'A' endorses the cheque to 'C', who takes it in good faith and for value. The cheque is dishonoured on presentation. Can 'C' enforce payment of the cheque under the Negotiable Instruments Act?
- 1C can enforce the payment of the cheque only against B.
- 2C can enforce the payment of the cheque against both A and B.
- 3C can enforce the payment of the cheque either against A or B.
- 4C can enforce the payment of the cheque only against A.✓
Correct answer
C can enforce the payment of the cheque only against A.
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