LAW OF EVIDENCE 581
Tenancy is an interest in land and is transferable and heritable.
Section 117 deals with (1) Estoppel of acceptor of a Bill of Exchange.
(2) Estoppel of a Bailee.
(3) Estoppel of a Licensee.
(1) The Estoppel with regard the Acceptor is to the effect that he should not be permitted to deny that the drawer had an authority to draw the Bill or to endorse it.
Reason for this rule is to be found in the Agreement between the Acceptor and the holder of the Bill.
What does the agreement of acceptance impost:
(1) That he will pay the payee or the holder.
(2) That if he fails to pay the drawer will pay.
What does it mean when he says that the Drawer will pay ? It means that the drawer had the authority and capacity to bind himself.
The payee took it on the basis of this agreement. The acceptor, therefore, is not permitted to deny this agreement.
Under Explanation I, he is permitted to deny that the signature of the drawer is a forgery.
This is contrary to English Law.
(2) & (3) Estoppel in respect of a Bailee and Licensee.
They cannot deny the authority of the bailor to make the bailment or of the licensor to grant such a license at the time when such bailment or license commenced.
ยง Matters stated without prejudice.