Commentary

21 Dishonour by non-payment

BILLS OF EXCHANGE vol 4(1)
| Commentary

21 Dishonour by non-payment

| Commentary

21 Dishonour by non-payment

Where an instrument, be it a bill of exchange, cheque or promissory note, is duly presented for payment and payment is refused or cannot be obtained or when presentment is excused and the bill is overdue and unpaid, it is said to be dishonoured by non-payment1. Subject to the provisions of the Bills of Exchange Act 1882, the holder immediately acquires a right of recourse as against the drawer and the indorsers2. It is necessary that notice of dishonour be given in accordance with the provisions of the Act of 18823

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