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Report No. 11

81. Section 28.-

Section 28 does not specify the manner in which an agent should indicate that he has signed as an agent so as to exclude his personal liability. Nor have any definite tests been laid down by our Courts so far.

In section 26(1) of the English Act it is provided that where a person signs a bill as drawer, indorser or acceptor, and adds words to his signature, indicating that he has signed 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 himself as an agent, or as filling a representative character, does not exempt him from personal liability. It is to be gathered from the instrument whether the covenant to pay is, in essence, given by the person executing the document on his own behalf or on behalf of some other. We have, accordingly, adopted the provision in section 26(1) of the English Act, with some verbal modifications.1

1. Section 66 of App I.

Negotiable Instruments Act, 1881 Back

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