Modeled after the Negotiable Instruments Law, Article 3 has been adopted as law by all 50 states and the District of Columbia.
Drawee in dating widows case of need: When in the bill or in any endorsement, the name of any person is given, in addition to the drawee, to be resorted to in case of need, such a person is called drawee in case of need.
(7) The order must be unconditional.
When a bill is accepted with a qualified acceptance, the holder may treat the bill of exchange having been dishonoured.Ambedkar Institute of Management Studies Research, Deeksha Bhoomi, Nagpur Effect of dishonour: When a negotiable instrument is dishonoured either by non acceptance or by non-payment, the other parties thereto can be charged with liability.Negotiation back Negotiation back is a process under which an endorsee comes again into possession of the instrument in his own right.Definition oegotiable instrument, documents of a certain type which are used in commercial transactions and monetary dealings, are known Negotiable instruments.A negotiable instrument is said to be dishonored when, upon presentation, payment or acceptance has been refused.Negotiation of an instrument is a process by which the ownership of the instrument is transferred by one person to another.A note payable to the maker himself is not pronate unless it is indorsed by him.This was a trial, trying a person.He is either the original payee, or the endorsee.Example: A is the holder of a bill for.1000.It can be paid only to another banker.It may be in any part of the instrument.The parties to a promissory note are maker, payee, holder, endorser and endorsee while parties to cheque are drawer, drawee, payee, holder, endorser and endorsee.Ambedkar Institute of Management Studies Research, Deeksha Bhoomi, Nagpur Where a bill is required to be protested under the Act within a specified time, it is sufficient if it is noted for protest within such time.Negotiable Instruments are always in written form.
The promise must be unconditional.
When a cheque is dishonoured general1y the bank who refuses payment returns back the cheque giving reasons in writing for the dishonour of the cheque.