Lawgist43Negotiable instrument made, etc., without consideration
A negotiable instrument made, drawn, accepted, indorsed or transferred without consideration, or for a consideration which fails, creates no obligation of payment between the parties to the transaction. But if any such party has transferred the instrument with or without indorsement to a holder for consideration, such holder, and every subsequent holder deriving title from him, may recover the amount due on such instrument from the transferor for consideration or any prior party thereto.
Exception I.-- No party for whose accommodation a negotiable instrument has been made, drawn, accepted or indorsed can, if he have paid the amount thereof, recover thereon such amount from any person who became a party to such instrument for his accommodation.
Exception II.-- No party to the instrument who has induced any other party to make, draw, accept, indorse or transfer the same to him for a consideration which he has failed to pay or perform in full shall recover thereon an amount exceeding the value of the consideration (if any) which he has actually paid or performed.
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- 26 Capacity to make, etc., promissory notes, etc
- 27 Agency
- 28 Liability of agent signing
- 29 Liability of legal representative signing
- 30 Liability of drawer
- 31 Liability of drawee of cheque
- 32 Liability of maker of note and acceptor of bill
- 33 Only drawee can be acceptor except in need or for honour
- 34 Acceptance by several drawees not partners
- 35 Liability of indorser
- 36 Liability of prior parties to holder in due course
- 37 Maker, drawer and acceptor principals
- 38 Prior party a principal in respect of each subsequent party
- 39 Suretyship
- 40 Discharge of indorser's liability
- 41 Acceptor bound, although, indorsement forged
- 42 Acceptance of bill drawn in fictitious name
- 43 Negotiable instrument made, etc., without consideration
- 44 Partial absence or failure of money-consideration
- 45 Partial failure of consideration not consisting of money
- 45A Holder's right to duplicate of lost bill
