| Commentary

17 Methods of dishonour

| Commentary

C: DISHONOUR OF INSTRUMENTS

1: MEANING OF DISHONOUR

17 Methods of dishonour1

Instruments may be dishonoured by non-acceptance or by non-payment.

In the case of non-acceptance the party upon whom the bill is drawn does not accept it on presentment2. ‘Acceptance’ means acceptance within the customary time, which is 24 hours, but non-business days are excluded3. Presentment may sometimes be dispensed with4.

In the case of dishonour by non-payment the instrument is accepted but it is not paid according to its tenor, or presentment is excused and the bill is overdue and unpaid

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