Commonwealth Consolidated Acts

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CHEQUES ACT 1986 - SECT 30

Capacity to incur liability on cheque

  (1)   Capacity to incur liability on a cheque is co - extensive with capacity to contract.

  (2)   Subsection   ( 1) does not enable a corporation to incur liability on a cheque if, but for that subsection, it would not have capacity to incur liability on the cheque.

  (3)   Where a cheque is drawn or issued by a person who does not have capacity or power to incur liability on a cheque, the cheque is nevertheless a valid cheque.

  (4)   Where a cheque is indorsed by a person who does not have capacity or power to incur liability on a cheque, the indorsement is nevertheless effective as an indorsement of the cheque.



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