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Business Environment and Law-The Negotiable Instruments Act, 1881

Parties To A Bill Of Exchange- Negotiable Instruments Act, 1881

   Posted On :  08.05.2018 06:12 am

Drawee in Case of Need: Such a person whose name is mentioned as an alternative drawee is called a drawee in case of need’.

Parties To A Bill Of Exchange
 
 
             The Drawer
 
             The Drawee
 
             The Payee
 
             The Holder
 
             The Indorser
 
             The Indorsee

Drawee in Case of Need: Such a person whose name is mentioned as an alternative drawee is called a drawee in case of need’.

Acceptor for Honour: An acceptor for honour is a person who, on the refuse by the original drawee to accept the bill or to furnish better security when demanded by the notary, accepts the bill in order to safeguard the honour of the drawer or any indorser.
 

Parties To A Promissory Note

 
 
             The Maker
 
             The Payee
 
             The Holder

              The Indorser
 
             The Indorsee

Capacity Of Parties: The capacity of a party to draw, accept, make or endorse a bill or note is co-extensive with his capacity to enter into contract.
 

Acceptance:

 
 
The acceptance of a bill is the indication by the drawee of his assent to the order of the drawer. An acceptance of a bill may be general or qualified.
 

Presentment:

 
 
Presentment of a negotiable instrument is made for two purposes.
 
 
  • For acceptance, and
 
  • For payment.
 
 

Dishonour:

 
 
A bill of exchange may be dishonoured either by non-acceptance Or by non-payment.
 
Dishonour by Non-Acceptance: Section 91 enumerates the circumstances when a bill will be considered as dishonoured by non-acceptance.
Dishonour by Non-Payment: A negotiable instrument is said to be dishonoured by non-payment when the maker, acceptor or drawee, as the case may default in payment upon being duly required to pay the same (Section 92


Tags : Business Environment and Law-The Negotiable Instruments Act, 1881
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