1. Payment in Due Course :-It means the payment according to the apparent tenore of the instrument in good faith and without negligence to any person in possession. Those circumstances which do not effort a reasonable ground for believe payment amount mentioned in it.
2. Noting and Protesting :-
A promissory note or bill of exchange is dishonoured by non-payment, the holder usually hands it to Notary Public. The Notary Public notes the particulars of the bill. In this note he will write the cause of non acceptance with date and fee.
Protesting :- A protest is a formal record of dishonour signed by the notary public and copy of the bill is also included in it. It is necessary to maintain the holders right against the drawer and the endorser.
Content of Protest :-
1. Same copy of the document.
2. Holders name and address.
3. Place and date where it was presented.
4. Name and address who dishonoured.
All the above proceeding should be when the document is dishonoured.
3. Acceptor For Honour :-
It is defined in the following words, "When a bill of exchange has not been noted or protested for non acceptance or for better security and any person accepts it for the honour of drawer or any one of the endorsers such person is called an acceptor for honour." Acceptor for honour is liable for the payment if the bill is not paid.
4. Drawee In Case of Need :-
A holder of a bill of exchange has a right to take the legal action against the drawer if the drawee refuses to accept it. In some cases an holder can present the bill to the alternative drawee if actual drawee refuses to accept it. Such alternative drawee is known as drawee in case of need.
No comments:
Post a Comment