Section 22-26 Bill of Exchange Act 1990
Section 22,23,24,25,26 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Capacity and Authority of Parties] of the Act.
Section 22 Bill of Exchange Act 1990
(Capacity of parties)
(1) 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 corporation to make itself liable as drawer, acceptor or endorser 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 endorsed by an infant, minor or corporation having no capacity or power to incur liability on a bill, the drawing or endorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
Section 23 Bill of Exchange Act 1990
(Signature essential to liability)
No person is liable as drawer, endorser or acceptor of a bill who has not signed it as such:
(a) 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.
Section 24 Bill of Exchange Act 1990
(Forged or unauthorised signature)
Subject to the provisions of this Act, 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 authorised signature not amounting to a forgery.
Section 25 Bill of Exchange Act 1990
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.
Section 26 Bill of Exchange Act 1990
(Person signing as agent or in representative capacity)
(1) Where a person signs a bill as drawer, endorser or acceptor and adds words to his signature, indicating that he signs for or on behalf of a principal, or in a representative character, he is not personally liable thereon; but the mere addition to his signature of words describing him as agent, or as filling a representative character, does not exempt him from personal liability.
(2) In determining whether a signature on a bill is that of the principal or that of the agent by whose hands it is written, the construction most favourable to the validity of the instrument shall be adopted.