Report No. 11

8. Agent's authority.-

(1) Every person capable of binding himself or of being bound by the making, drawing, acceptance or negotiation of an instrument may so bind himself or be bound by a duly authorised agent acting in the name of such person.

(2) A general authority of an agent to transact business and to receive and discharge debts does not confer upon him the power of accepting or indorsing instruments so as to bind his principal.

(3) An authority to draw instruments does not of itself import an authority to indorse. [Section 27]