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Sec. 111. Waiver of protest.

- A waiver of protest, whether in the case of a foreign bill of


exchange or other negotiable instrument, is deemed to be a waiver not only of a
formal protest but also of presentment and notice of dishonor.
In a waiver of protest, presentment and notice of dishonor are also deemed. This is
because protest is the steps accompanying dishonor that is necessary to charge a party
secondarily liable. Protest is defined as the formal instrument executed usually by a notary
public certifying that the legal steps necessary to fix the liability of the drawee and the indorsers
have been taken. But where notice of dishonor is waived, presentment for payment is not
waived.
Sec. 112. When notice is dispensed with. - Notice of dishonor is dispensed with when,
after the exercise of reasonable diligence, it cannot be given to or does not reach the
parties sought to be charged.
Notice of dishonor is dispensed with or excused when it does not reach the parties sought or
required to be charged after the exercise of reasonable diligence. Reasonable diligence
depends upon the circumstances of each case. It implies active search. Notice of dishonor is
dispensed with like for example, when political disturbances interrupt and obstruct the ordinary
negotiations of trade, it create a sufficient excuse for want of presentment or notice, upon the
same principle the controls in cases of military operations or interdictions of commerce. Another
also is the occurrence of a malignant, contagious, infectious disease.
Sec. 113. Delay in giving notice; how excused. - Delay in giving notice of dishonor is
excused when the delay is caused by circumstances beyond the control of the holder
and not imputable to his default, misconduct, or negligence. When the cause of delay
ceases to operate, notice must be given with reasonable diligence.
In Section 112 dispenses with the duty to give notice but this section excuses just the delay in
giving it. It is excused when the delay is caused by circumstances beyond the control of the
holder. Circumstances beyond the control of the holder are events which could not be foreseen
or which though foreseen are inevitable. As soon as the cause which operates to prevent the
giving of notice of dishonor is removed, notice must be made with reasonable diligence.
Sec. 114. When notice need not be given to drawer. - Notice of dishonor is not
required to be given to the drawer in either of the following cases:
(a) Where the drawer and drawee are the same person;
(b) When the drawee is fictitious person or a person not having capacity to contract;
(c) When the drawer is the person to whom the instrument is presented for
payment;
(d) Where the drawer has no right to expect or require that the drawee or acceptor will
honor the instrument;

(e) Where the drawer has countermanded payment.


Notice to drawer is not required when the holder has the option to treat bill as promisory note. It
is where the drawer and drawee is the same person and where the drawee is fictitious person.
Therefore the drawer will be regarded as a maker and a primary party.
It is not required if the drawer is the person to whom the instrument is presented for payment. It
is because the drawer has knowledge of the dishonor since he is the one who dishonored the
instrument. Also where the drawer has no right to expect or require that the drawee or acceptor
will honor the instrument, notice is not required.
Notice to drawer not required where the drawer has countermanded payment or cancelled
payment. It is because the drawer knows that the instrument will be dishonored. When the
drawer countermands payment, he orders the drawee not to pay.

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