This action might not be possible to undo. Are you sure you want to continue?
Placing of negotiable instrument before drawee is called presentment
Types of presentment
For acceptance For sight For payment
Presentment for acceptance
Applicable only for bill of exchange but in case of payable on demand or payable on fixed time need not be presented for acceptance.
Acceptance 0f BOE is necessary in following
When BOE is payable after sight it must be presented before drawee for acceptance to fix the due date Where there is an express stipulation
When it is not necessary for bill to present for acceptance still holder may choose to present it for acceptance because It provides additional security Right to hold prior parties liable fro non acceptance.
Essentials of valid acceptance
Writing Signed by drawee or his authorized agent Must be on the face of instrument Specified time or reasonable time Specified place or business place or residence of drawee
Modes of acceptance
General or absolute acceptance: without any condition or qualification Qualified acceptance: with any condition or qualification.Ex. Accepted on sale of my house Accepted for Rs. 10000 only against an amt of 5000 on the bill Accepted 3 months after due date against 2 months written on the bill
To whom presentment can be made
The drawee of the bill All the drawees The LR of deceased drawee Official receiver of an insolvent drawee The authorized agent The acceptor of honour
Time for presentment
When the time is specified, within that specified time When the time is not specified within a reasonable time When the presentment is not necessary any time before payment
Place for presentment
At a specified place Drawee¶s place of business or residence By registered post when the drawer is authorized to do so
Presentment is excused(Sec.61&91)
Where the presentment is excused the bill is deemed to be dis-honoureed for non acceptence even without presentment for non acceptance. When the drawee is fictitious person or incapable of contracting Cannot be searched or found Acceptance is refused on some other ground Where the drawee is dead or insolvent
Proof of presentment: drawee is entitled for 48 hrs time excepting public holidays to judge whether he shall accept it or not Effect of non presentment:where the presentment for acceptance is necessary and holder fails to do so then all the endorsers are discharge from the liability to him.
Acceptance for honour
A special type in which to save the credit of all parties to a bill, any person who is not liable on the bill can accept when the original drawee refuses to accept Essentials: Must be after noting and protesting With consent of holder Who is not liable on the bill In writing and for whole amt Signed by acceptor of honour Should be made before the bill is overdue
Presentment for sight
In case of bill payable after sight , predsentment for acceptance is essential before payment.the expression after sight in the note means that payment is not to be demanded till it has been shown to the maker.
Presement for payment
Must be presented before drawee ,maker, acceptor thereof. Rules regarding presentment for payment Presentment through post office: consent is necessary Hours of presentment: usual business hours Presentment after date of sight: must be on date of maturity
Presentment of chq.- should be presented to the bank within a reasonable time Place specified place or place of business or residence of drawee On demand instrument-must be presented in a reasonable time after it is received by the holder. Presentment can be made to LR, agent or assignee in whatever case applicable.-Death, insolvency etc.
When presentment is unnecessary
when the holder treat it as dishonoured without it is presented .Intentionally prevented presentment .Business place closed .No person at the place of payment .Payer cannot be found .By payee by waiver .Drawer could not suffer any damages from non presentment: insolvent ,incompetent to contract or drawer and drawee are the same person.