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Chapter 14:02

Bills Of Exchange Act

Regulations, G.N. No. 23, 1895; Ord. 4/1907; Acts 13/1924, 21/1937, 29/1940, 37/1946, 5/1959 (Federal), 11/1959 (s. 3), 3/1961, 14/1967, 19/1969 (s. 5), 15/1981, 42/1981, 23/199, 12/97 (s. 9); R.G.N.s 790/1963, 745/1964.




  1. Short title.



  1. Form and interpretation.
  2. Effect where different parties to bill are the same person.
  3. Address to drawee.
  4. Certainty required as to payee.
  5. What bills are negotiable.
  6. Sum payable.
  7. Bill payable on demand.
  8. Bill payable at future time.
  9. Omission of date in bill payable after date.
  10. Ante-dating and post-dating.
  11. Computation of time of payment.
  12. Case of need.
  13. Optional stipulations by drawer or endorser.
  14. Definition and requisites in form.
  15. Time for acceptance.
  16. General and qualified acceptances.
  17. Inchoate instruments.

Capacity and Authority of Parties

  1. Capacity of parties.
  2. Signature essential to liability.
  3. Forged and unauthorized signature.
  4. Procuration signature.
  5. Person signing as agent or in representative capacity.

Consideration of Bill

  1. Value and holder for value.
  2. Accommodation bill or party.
  3. Holder in due course.
  4. Presumption of value and good faith.

Negotiation of Bills

  1. Negotiation of bill.
  2. Requisites of valid endorsement.
  3. Conditional endorsement.
  4. Endorsement in blank and special endorsement.
  5. Restrictive endorsement.
  6. Negotiation of overdue or dishonoured bill.
  7. Negotiation of bill to party already liable thereon.
  8. Rights of holder.

General Duties of Holder

  1. When presentment for acceptance is necessary.
  2. Time for presenting bills payable after sight.
  3. Rules as to presentment for acceptance and excuses for non-presentment.
  4. Non-acceptance.
  5. Dishonour by non-acceptance and its consequences.
  6. Duties as to qualified acceptances.
  7. Rules as to presentment for payment.
  8. Excuses for delay or non-presentment for payment.
  9. Dishonour by non-payment.
  10. Notice of dishonour and effect of non-notice.
  11. Rules as to notice of dishonour.
  12. Excuses for non-notice and delay.
  13. Noting or protest of bill.
  14. Holder’s duties as regards drawee or acceptor.

Liabilities of Parties

  1. Funds in hands of drawee.
  2. Acceptor’s liability.
  3. Liability of drawer or endorser.
  4. Stranger signing bill liable as endorser.
  5. Measure of damages against parties to dishonoured bill.
  6. Transferor by delivery and transferee.

Discharge of Bill

  1. Payment in due course.
  2. Banker paying demand draft where endorsement is forged.
  3. Acceptor the holder at maturity.
  4. Express waiver.
  5. Alteration of bill.

Acceptance and Payment for Honour

  1. Acceptance for honour supra
  2. Liability of acceptor for honour.
  3. Presentment to acceptor for honour.
  4. Payment for honour supra

Lost Instruments

  1. Holder’s right to duplicate of lost bill.
  2. Action on lost bill

Bill in a Set 70. Rules as to sets.

Conflict of Laws 71. Rules where laws conflict.



  1. Cheques: definition.
  2. Presentment of cheques for payment.
  3. Revocation of banker’s authority.
  4. Protection of bankers paying unendorsed or irregularly endorsed cheques.
  5. Rights of bankers collecting cheques not endorsed by holders.
  6. Unendorsed cheques as evidence of payment.
  7. State to be regarded as customer of banker.

Crossed Cheques

  1. General and special crossings defined.
  2. Crossings by drawer or after issue.
  3. Crossing a material part of cheque.
  4. Banker’s duties as to crossed cheques.
  5. Protection afforded banker and drawer where cheque crossed.
  6. Effect of crossing on holder.
  7. Recovery of compensation by true owner of stolen or lost cheque in certain circumstances.
  8. When banker credits customer’s account with amount of crossed cheque before receiving payment thereof.
  9. Sections 79 to 86 to extend to documents other than cheques crossed for like object.
  10. Provisions as to crossed cheques applied to banker’s drafts.



  1. Definition of promissory note.
  2. Delivery necessary.
  3. Joint and several notes.
  4. Note payable on demand.
  5. Presentment of note for payment.
  6. Liability of maker.
  7. Application of Part II to notes.



  1. Good faith.
  2. Computation of time.
  3. When noting equivalent to protest.
  4. Protest when notary not accessible.
  5. Dividend warrants and coupon for interest may be crossed.
  6. Laws not to be affected by this Act.
  7. When prescription to commence to run in case of bill payable on demand.

SCHEDULE: Form of Protest Which May be Used When Services of Notary Cannot be Obtained.

AN ACT to codify and amend the law relating to bills of exchange, cheques and promissory notes.

[Date of commencement: 1st June, 1895.]



1    Short title

This Act may be cited as the Bills of Exchange Act [Chapter 14:02].

                       2    Interpretation

In this Act—

“acceptance” means an acceptance completed by delivery or notification;

“action” includes a counter-claim, claim in reconvention and set off;

“banker” includes a body of persons, whether incorporated or not, who carry on the business of banking;

“bearer” means the person in possession of a bill or note which is payable to bearer;

“bill” means bill of exchange;

“delivery” means transfer of possession, actual or constructive, from one person to another;

“endorsement” means an endorsement completed by delivery;

“holder” means the payee or endorsee of a bill or note, who is in possession of it, or the bearer thereof; “issue” means the first delivery of a bill or note, complete in form, to a person who takes it as a holder;

“non-business days” includes any Sunday or any public holiday;

“note” means promissory note;

“payment in due course” means payment made at or after the maturity of a bill to the holder thereof in good faith and without notice that his title to the bill is defective;

“to note” is to make a notarial minute in accustomed form of the circumstances of dishonour and at the time of dishonour of a bill or note;

“value” means valuable consideration.



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