Business Law Unit 4 Business Law Full

Presentation of Negotiable Instruments

Read Time:1 Minute, 1 Second

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.

Business Law Unit 3 Business Law Full Notes Presentation of Negotiable Instruments

You May Also Like To Read : Essentials Of A Negotiable Instrument

Thanks For Reading: Presentation of Negotiable Instruments

Powered By 360Presence

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published.

Previous post Difference Between Negotiation and Assignment
Business Law Unit 4 Business Law Full Next post Essential Rules of Valid Acceptance