TOPIC- Presentation of Negotiable Instruments
Presentment of a negotiable instrument means presenting or showing a negotiable instrument to the drawee, maker or acceptor.
This presentment may be
(i) for acceptance,
(ii) for sight or,
(iii) for payment.
Presentment of acceptance:
Only certain types of bills of exchange require presentment of acceptance. The following bills must be presented for acceptance.
(i) A bill payable after sight or after presentment must be presented for acceptance so that date of maturity of the bill may be fixed.
(ii) A bill in which it has been expressly stipulated that it shall be presented for acceptance before payment.
However, a bill payable (a) on demand, or (b) on a fixed day, or (c) a certain number of days after date need not be presented for acceptance. Even in case where presentment for acceptance is optional, it is advisable to present the bill for acceptance so as to get (i) the benefit of additional security of drawee’s name on the bill, (ii) and immediate cause of action against the drawee for dishonour by non- acceptance.
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