15.

HOW TO ENFORCE LIABILITY

-or TO 15.01. PRIMARILY LIABLE
a)
b)
The maker is liable the moment he makes the
instrument. Section 60 of the NIL provides that the
maker by making the promissory note
"engages
to pay the instrument according to its tenor.
A drawee becomes liable the moment he accepts
the instrument. Section 62 provides that the
"acceptor, by accepting the instrument, engages
that he will pay it according to the tenor of his
acceptance.
15.02. SECONDARY LIABLE
a)
Steps to Charge Secondary Parties in Promissory
Note
1)
2)
Presentment for payment must be made
within the required period to the maker
(Sec. 70, NIL).
Notice of dishonor should be given, if
promissory note is dishonored by non-
payment by the maker (Sec. 89, NIL).
b)
Steps to Charge Secondary Parties in Bill of
Exchange
1)
Presentment for acceptance or negotiation
within a
reasonable time after it was
acquired
- should be made only in the
instances required in Section 143.
2)
If dishonored by non-acceptance:
(i)
Notice of Dishonor should be given to
the indorsers and drawer (Sec. 89).
(in)
If the bill is a foreign bill, there must be
protest for dishonor by non-acceptance
(Sec. 159).
3)
If the bill is accepted:
(i)
Presentment for payment to
acceptor should be made.