⢠Acceptance o Acceptance = drawee's assent to drawer's order o ...
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Acceptance o Acceptance = drawee’s assent to drawer’s order – s. 22 o Following acceptance, drawee => acceptor o Presentment for acceptance rules – ss. 44-46 o Acceptance may be general or qualified – s. 24 Negotiation o Negotiation = transfer of bill to holder – s. 36 (1) o Method of negotiation § Bearer – by delivery – s. 36 (2) § Order – by indorsement + delivery – s. 36 (3) o Method of indorsement – s. 37 o Types of indorsement – ss. 38-40 Examples of Types of Bills (As appears on front of the bill) o Bearer Bills (see s. 13 (3)) § Pay ‘John or bearer’ § Pay ‘Bearer’ o Order Bills (see s. 13 (4)) § Pay ‘John’ § Pay ‘John or order’ § Pay ‘to order of John’ o Not a bill (see Orbit Mining & Trading v Westminster Bank) § Pay ‘Cash or order’ Examples of Types of Indorsement (As Appears on the Back of the Bill) o Special Indorsement (s. 39 (2)) § Pay Joe Bloggs o Indorsement in Blank (s. 39 (1)) o Restrictive Indorsement (s. 40 (1)) § Pay Joe Bloggs Only o Conditional Indorsement (s. 38) § Pay Joe Bloggs when he submits his Finance Law Assignment Payment o Bills must be presented for payment, or face consequences – s. 50 (1) o Presentment for payment rules – s. 50 (2) o Bill not paid on presentment treated as dishonoured by non-payment – s. 52 Payment in Due Course o Bill paid in due course means the bill is discharged (spent piece of paper) o Definition of ‘payment in due course’ – s. 64 (1) § A) paid by/on behalf of drawee/acceptor § B) payment made to holder of bill § C) at/or after maturity of bill § D) in good faith § E) without notice that bill is defective o An accommodation bill is discharged when it is paid in due course by the party accommodated will indemnify the accommodation party, should it be obliged to pay the bill on maturity – s. 64 (3)
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Acceptance o Acceptance = drawee’s assent to drawer’s order – s. 22 o Following acceptance, drawee => acceptor o Presentment for acceptance rules – ss. 44-46 o Acceptance may be general or qualified – s. 24 Negotiation o Negotiation = transfer of bill to holder – s. 36 (1) o Method of negotiation § Bearer – by delivery – s. 36 (2) § Order – by indorsement + delivery – s. 36 (3) o Method of indorsement – s. 37 o Types of indorsement – ss. 38-40 Examples of Types of Bills (As appears on front of the bill) o Bearer Bills (see s. 13 (3)) § Pay ‘John or bearer’ § Pay ‘Bearer’ o Order Bills (see s. 13 (4)) § Pay ‘John’ § Pay ‘John or order’ § Pay ‘to order of John’ o Not a bill (see Orbit Mining & Trading v Westminster Bank) § Pay ‘Cash or order’ Examples of Types of Indorsement (As Appears on the Back of the Bill) o Special Indorsement (s. 39 (2)) § Pay Joe Bloggs o Indorsement in Blank (s. 39 (1)) o Restrictive Indorsement (s. 40 (1)) § Pay Joe Bloggs Only o Conditional Indorsement (s. 38) § Pay Joe Bloggs when he submits his Finance Law Assignment Payment o Bills must be presented for payment, or face consequences – s. 50 (1) o Presentment for payment rules – s. 50 (2) o Bill not paid on presentment treated as dishonoured by non-payment – s. 52 Payment in Due Course o Bill paid in due course means the bill is discharged (spent piece of paper) o Definition of ‘payment in due course’ – s. 64 (1) § A) paid by/on behalf of drawee/acceptor § B) payment made to holder of bill § C) at/or after maturity of bill § D) in good faith § E) without notice that bill is defective o An accommodation bill is discharged when it is paid in due course by the party accommodated will indemnify the accommodation party, should it be obliged to pay the bill on maturity – s. 64 (3)
