Dishonour - Law Dictionary Search Results
Home Dictionary Name: dishonourNotice of dishonour
Notice of dishonour. The 49th section of the Bills of Exchange Act,1882, contains fifteen rules as to notice of dishonour, of which the more important are these:-The notice must be given by or on behalf of the holder or of an indorser himself liable (sub-s. 1).The notice may be given in writing or by personal communication. If written it need not be signed, and an insufficient written notice may be supplemented by a verbal communication (sub-ss. 5, 7).The notice may (sub-s. 12) be given as soon as the bill is dishonoured, and must be given within a reasonable time thereafter. In the absence of special circumstances notice is not deemed to have been given within a reasonable time, unless--(a) When the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dishonour of the bill.(b) Where the person giving and the person to receive notice reside in different places, the notice is sent off on...
Dishonour
Dishonour, to refuse or neglect to accept or pay when duly presented for payment a bill of exchange or promissory note or draft on a banker. See (English) Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 47....
Noting
Noting, when a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each.Such notes must be made within a reasonable time after dishonour, and must specify the date of dishonour, the reason, if any, assigned for such dishonour, or if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary's charges. [Negotiable Instruments Act, 1881 (26 of 1881), s. 99]--The making of a memorandum or note on a bill of exchange by a notary which states that he has presented the bill for payment or acceptance, and that it has been dishonoured. It is usual, in cases of non-payment of bills of exchange, for London bankers, after six o'clock on the day upon which the bills fall due, to cause inland bills to be noted. The duty of a notary in protesting a bill consists in thre...
Re-exchange
Re-exchange is 'the difference in the value of a bill occasioned by its being dishonoured in a foreign country in which it was payable. The existence and amount of it depend on the rate of exchange between the two countries. The theory of the transaction is this: a merchant in London endorses a bill for a certain number of Austrian florins, payable at a future date in Vienna. The holder is entitled to receive in Vienna, on the day of the maturity of the bill, a certain number of Austrian florins. Suppose the bill to be dishonoured. The holder is now, by the custom of merchants, entitled to immediate and specific redress by his own act in this way: he is entitled, being in Vienna, then and there to raise the exact number of Austrian florins by drawing and negotiating a cross-bill, payable at sight on his endorser in London, for as much English money as will purchase in Vienna the exact number of Austrian florins at the rate of exchange on the day of dishonour; and to include in the amou...
Holder in due course
Holder in due course is 'a holder who has taken a bill of exchange [cheque or note], complete and regular on the face of it,' under the following conditions, namely:-(a) That he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact.(b) That he took the bill [cheque or note] in good faith and for value, and that at the time it was negotiated to him he had no notice of any defect in the title of the person who negotiated it, Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 29.A person who in good faith has given value for a negotiable instrument that is complete and regular on its face, is not overdue, and, to the possessor's knowledge has not been dishonoured, Black's Law Dictionary, 7th Edn.In R. E. Jones Ltd. v. Warning and Gillow Ltd., 1926 AC 670, it was held that the original payee of a cheque is not a holder in due course within the meaning of the Bill of Exchange Act, 1882.Means any person who for cons...
Liability of drawer
Liability of drawer, the drawer of a bill of exchange or cheque is bound, in case of dishonour by the drawee thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided. (Negotiable Instruments Act, 1881 (26 of 1881), s. 30)...
Abatement
Abatement, a making less:-(1) Abatement of Freehold.-The title of a real action which has been abolished. This takes place where a person dies seised of an inheritance, and before the heir or devisee enters, a stranger, having no right, makes a wrongful entry and gets possession of it. Such an entry is technically called an abatement, and the stranger an abater. It is, in fact, a figurative expression, denoting that the rightful possession or freehold of the heir or devisee is overthrown by the unlawful intervention of a stranger. Abatement differs from intrusion, in that it is always to the prejudice of the heir or immediate devisee, whereas the latter is to the prejudice of the reversioner or remainder man: and disseisin differs from them both, for to disseise is to put forcibly or fraudulently a person seised of the freehold out of possession, Co. Litt. 277a.(2) Abatement of Nuisances.-A remedy allowed by law to a person injured by a nuisance to remove or put an end to it by his own...
Advice
Advice, [fr. avis, Fr., avviso, It., avice, Old Eng.], view, opinion, counsel; also, the instruction usually given by one merchant or banker to another by letter, informing him of bills or drafts drawn on him, with particulars of date, or sight, the sum, and the payee. Bills presented for acceptance or payment are frequently dishonoured for 'want of advice....
Banker
Banker, one who receives money to be drawn out again as the owner has occasion for it, the customer being lender, and the banker borrower, with the superadded obligation of honouring the customer's cheques up to the amount of the money received and still in the banker's hands.A customer's money may become irrecoverable if six years have elapsed without payment by the banker of principal or interest after demand. The relation of banker and customer is merely that of debtor and creditor, with a superadded obligation on the banker to honour the customer's cheques, so that the Limitations Act, 1623, (21 Jac. 1, c. 16), runs against the customer. See UNCLAIMED PROPERTY.A cheque is not an assignment to the payee of the customer's balance, so that if a customer having a balance of 99l. give a cheque for 100l., the banker is legally justified in dishonouring it by refusing payment altogether, Schroeder v. Central Bank of London, (1876) 34 LT 735. If a customer overdraws his account, this amoun...
Ignominy
Ignominy means public disgrace or dishonour, Black's Law Dictionary, 7th Edn., p. 749....
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