Dishonour of negotiable

instrument
Negotiable instrument dishonour

Dishonor of a negotiable instrument occurs when the Drawer,

Drawee, or payee fails to fulfil their obligations.

Non-acceptance causes dishonour:

The drawee's failure to accept the instrument and pay the

amount due results in the instrument's dishonour.

When does a bill become unpaid due to non-

acceptance?

Non-acceptance of a bill in these circumstances would be

considered dishonoured:
When a drawee, or more than one drawees, refuses to accept a
bill after being legally obligated to do so.

When a bill was supposed to be presented but wasn't.

When the drawee is unable to reach an agreement that is legally

enforceable.

A qualified acceptance is given to the bill.

If the drawee is a fictious character.

When its unable to locate the drawee.

When the drawee gets insolvent or dies and holder was unable to
present such instrument in front of legal representatives in a
reasonable time.