Chapter XIII: Special Rules of Evidence Section 118: Presumptions as to negotiable instruments This critical section lists the assumptions that a court must make about an instrument unless there is evidence presented to prove otherwise. 1. Presumption of Consideration (Clause a): 2. Presumption as to Date (Clause b): 3. Presumption as to Time of Acceptance […]
Chapter XII: Of Compensation Section 117: Rules as to compensation This section defines the rules for calculating the total financial amount owed to a party (the compensation) when an instrument is dishonoured. 1. Holder’s Compensation (Clause a): 2. Exchange Rate Compensation (Clause b): 3. Indorser’s Compensation (Clause c): 4. Indorser’s Exchange Rate Compensation (Clause d):
Chapter XI: Of Acceptance and Payment for Honour and Reference in Case of Need Section 108: Acceptance for honour This section defines the act of a third party stepping in to accept a Bill that has been refused. 1. Who Can Accept for Honour: Section 109: How acceptance for honour must be made This section
Chapter X: Of Reasonable Time Section 105: Reasonable time This section provides the general factors used to decide if an action was done within a legal timeframe. 1. Factors for Determining Time: 2. Excluding Holidays: Section 106: Reasonable time of giving notice of dishonour This section provides specific rules for notification based on the distance
Chapter IX: Of Noting and Protest Section 99: Noting This section introduces Noting, the first official step taken by a public notary to certify dishonour. 1. Optional Notary Certification: 2. Content of Noting: 3. Noting in Case of Evasion: Section 100: Protest This section introduces Protest, which is the formal, detailed, notarized certificate of dishonour.
Chapter VIII: Of Notice of Dishonour Section 91: Dishonour by non-acceptance This section defines exactly what constitutes a Bill of Exchange being dishonoured when it is first presented for acceptance. 1. Default on Acceptance: 2. Excuse for Non-Presentment: 3. Incompetence or Qualified Acceptance: Section 92: Dishonour by non-payment This section defines what constitutes a Bill,
Chapter VII: Of Discharge from Liability on Notes, Bills, and Cheques Section 82: Discharge from liability This section lists the three main ways a party’s obligation on an instrument is cancelled. 1. Discharge by Cancellation (Clause a): 2. Discharge by Release (Clause b): 3. Discharge by Payment (Clause c): Section 83: Discharge by allowing drawee
Chapter VI: Of Payment and Interest Section 78: To whom payment should be made This section defines who can legitimately receive payment to discharge the debt. 1. Payment to the Holder: Section 79: Interest when rate specified This section details how to calculate interest when the instrument specifies an interest rate. 1. Specified Interest Rate:
Chapter V: Of Presentment Section 61: Presentment for acceptance This section deals specifically with presenting a Bill of Exchange to the Drawee so they can formally agree to pay it. 1. Presentment Rule for After-Sight Bills: 2. Penalty for Default: 3. Drawee Cannot Be Found: 4. Presentation at a Specific Place: 5. Presentment via Post
Chapter IV: Of Negotiation Section 46: Delivery This section establishes that the transfer of an instrument is only complete upon physical or constructive transfer. 1. Completion by Delivery: 2. Delivery Between Direct Parties: 3. Conditional Delivery: 4. Negotiation Methods: Section 47: Negotiation by delivery This section specifically reinforces the transfer method for bearer instruments. 1.
