Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.