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Life of a negotiable instrument the bill is not accepted, it is said to be

“dishonored by non-acceptance”
Negotiable Instruments – written contracts for
the payment of money; by its form, intended as
a substitute for money and intended to pass
4.Presentment for payment consist of
from hand to hand, to give the holder in due
exhibiting the instrument to the person primarily
course the right to hold the same and collect the
liable thereon and demanding payment from
sum due
him on the date of maturity. If the instrument is
1. Issuance— A negotiable instrument's paid, it is the death of the instrument
legal life does not begin until it is issued
Where the instrument is presented for payment,
by the maker or drawer to the first
and payment is refused or cannot be obtained,
holder. It is the first delivery of the
or where presentment for payment is excused
instrument, complete in form, to a
and the instrument is overdue and unpaid, it is
person who takes it as holder; it is the
said to be “dishonored by non-payment”
first transfer of an instrument to a
payee. 5. Notice of dishonor. “When a negotiable
Instrument has been dishonored by non-
2. Negotiation is the transfer of an acceptance or non-payment, a notice of
instrument from one person to another dishonor must be given to the drawer
in which its effect is to make the and to each indorser, and any drawer or
transferee the holder of the instrument indorser to whom such notice is not
thereof. If payable to bearer, it is given discharged.” The purpose is to
negotiated by delivery; if payable to notify the drawer and the indorsers that
order, it is negotiated by the the instrument has not been accepted
indorsement of the holder completed by by the drawee, or that it has not been
delivery. paid by the acceptor, in the case of bills,
or by the maker, in the case of notes.

3. Presentment for acceptance for bill of Notice of dishonor – the bringing, either
exchange- It consists of exhibiting the verbally or in writing, to the knowledge
bill to the drawee and demanding that of the drawer or indorser of an
he accept it, that is signify his assent to instrument, the fact that a specified
the order or command of the drawer. negotiable instrument, upon proper
proceedings taken, has not been
3.1 Acceptance is the signification by the drawee
accepted or has not been paid and that
of his assent to the order of the drawer. It is
the party notified is expected to pay it.
usually done by writing across the face of the bill
Protest- If such notice is given by a
the word “accepted,” followed by the signature
notary public
of the drawee.
6. Discharge. A negotiable instrument is
3.2 Dishonor by non-acceptance. Where the bill usually discharged “by payment in due
is presented for acceptance, and acceptance is course by or on behalf of the principal
refused by the drawee, or cannot be obtained, or debtor. But where the one paying is a
where presented for acceptance is excused, and party secondarily liable on the
instrument, it is not discharged”