धारा 20

Every person capable of contracting, according to the law to which he is subject, may make, draw, accept, endorse, or transfer a promissory note, bill of exchange or cheque. As per Section 20 of the Negotiable Instruments Act, 1881, 'Every person capable of contracting, according to the law to which he is subject, may make, draw, accept, endorse, or transfer a promissory note, bill of exchange or cheque.' A person who is not capable of contracting, such as a minor or a person of unsound mind, cannot make, draw, accept, endorse, or transfer a promissory note, bill of exchange or cheque. The Supreme Court in the case of State Bank of India vs. M. K. Bhargava (2005) has held that a person who is not capable of contracting cannot make, draw, accept, endorse, or transfer a promissory note, bill of exchange or cheque.