- 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.