ACCEPTED FOR VALUE BILLS OF EXCHANGE ACT 1909 - SECT 23 (1) A bill may be accepted: (a) before it has been signed by the drawer, or while otherwise incomplete; (b) when it is overdue, or after it has been dishonoured by a previous refusal to accept, or by non-payment. (2) When a bill payable after sight is dishonoured by non-acceptance and the drawee subsequently accepts it, the holder, in the absence of any different agreement, is entitled to have the bill accepted as of the date of first presentment to the drawee foracceptance. BILLS OF EXCHANGE ACT 1909 - SECT 22 (1) The acceptance of a bill is the signification by the drawee of his or her assent to the order of the drawer. (2) An acceptance is invalid unless it complies with the following conditions, namely: (a) It must be written on the bill and be signed by the drawee. The mere signature of the drawee, without additional words, is sufficient. (b) It must not express that the drawee will perform his or her promise by any other means than the payment of money. BILLS OF EXCHANGE ACT 1909 - SECT 24 (1) An acceptance is either: (a) general; or (b) qualified. (2) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn. (3) In particular an acceptance is qualified which is: (a) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated; or (b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn; or (c) local, that is to say, an acceptance to pay only at a particular specified place; or (d) qualified as to time; or (e) the acceptance of some one or more of the drawees, but not of all. (4) An acceptance to pay at a particular place is a general acceptance, unless it expressly states that the bill is to be paid there only, and not elsewhere. BILLS OF EXCHANGE ACT 1909 - SECT 26 (1) Every contract on a bill, whether it be the drawers, the acceptors, or an indorsers, is incomplete and revocable, untildelivery of the instrument in order to give effect thereto: Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the personentitled to the bill that he or she has accepted it, the acceptance then becomes complete and irrevocable. (2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery: (a) in order to be effectual, must be made either by or under the authority of the party drawing, accepting, or indorsing, as the case may be; or (b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill. But if the bill be in the hands of a holder in due course, a valid delivery of the bill by all parties prior to him or her, so as to make them liable to him or her, is conclusively presumed. (3) Where a bill is no longer in the possession of a party who has signed it as a drawer, acceptor, or indorser, a valid and unconditional delivery by him or her is presumed until the contrary is proved.
Posted on: Thu, 06 Nov 2014 10:01:16 +0000
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