What is meant by an acceptor for honour?
Definition of acceptor for honor : one who accepts a protested bill of exchange on which he or she is not already liable for the honor of some party to the bill, the acceptor being liable to the holder and all parties subsequent to the one for whose honor he or she accepts.
What is the liability of an acceptor for honor?
An acceptor for honour binds himself to all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee do not: and such party and all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him in …
Who is an acceptor in law?
ACCEPTOR, contracts. The person who agrees to pay a bill of exchange drawn upon him. There cannot be two separate acceptors of a bill of exchange, e. g. an acceptance by the drawee, and another for the honor of some party to the bill.
Who is qualified to be a payer for honor?
If there are two or more persons whose payment will discharge most parties to the bill, the person authorized by the party for whose honor the payment is to be made or the referee in case of need shall be accepted as the payer for honor.
How acceptance for honor is made?
acceptance for honor must be with the consent of the holder of the instrument. FORMAL REQUISITES: 1. must be in writing; 2. must indicate that it is an acceptance for honor; 3.
Who is accepting the bill of exchange?
It must be stamped as per the requirement of law. A bill of exchange is generally drawn by the creditor upon his debtor. It has to be accepted by the drawee (debtor) or someone on his behalf. It is just a draft till its acceptance is made.
What conditions must be present before an acceptor for honor will be liable by his acceptance?
1) The holder must consent to acceptance for honor. The holder cannot be compelled to assent to acceptance for honor. 2) The bill must have been noted or protested for the non-acceptance or for better security. 3) Acceptance for honor can be made by a person who is not already liable on the bill.
Which is an example of acceptor?
An example of an acceptor is a bank that accepts a check drawn against it and assumes responsibility for its payment.
Who is the acceptor of commercial bill?
the drawee
Acceptance An undertaking by the drawee (who then becomes the “acceptor”), of a Bill of Exchange to pay to the person presenting the bill (called the holder in due course) the face value of the bill on the due date. he accepts it, he is called the drawee.
Who is acceptor in bill of exchange?
Drawee
Drawee is the person upon whom the bill of exchange is drawn. Drawee is the debtor who has to pay the money to the drawer. He is also known as ‘Acceptor’.
When the acceptor accepts the bill with certain conditions the acceptance is called acceptance?
Absolute and Unconditional: The acceptor must agree to pay the amount as mentioned in the instrument in full without any condition or limitation. In case of conditional acceptance, the holder may treat the negotiable instrument dishonored. 6.
How a bill of exchange can be discharged?
(1)Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged. (2)In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent.
What is the meaning of acceptor for honor?
Definition of acceptor for honor : one who accepts a protested bill of exchange on which he or she is not already liable for the honor of some party to the bill, the acceptor being liable to the holder and all parties subsequent to the one for whose honor he or she accepts
When can an acceptor for honour be charged?
Moreover, an acceptor for honour cannot be charged unless the bill has been presented at its maturity to the drawee for payment and has been dishonoured by him and noted or protested for such dishonour (Section 112).
What are the rights and liabilities of an acceptor for honour?
Rights and Liabilities of such acceptor: Section 111 of the Act states that an acceptor for honour binds himself to all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee does not.
What are the conditions for valid acceptance for honour?
Conditions for valid acceptance for honour: These are: (i) that the bill has been noted or protested for non-acceptance or better security: (ii) that such an acceptance has been made with the consent of the holder, (iii) that the acceptor for honour is not a party already liable on the bill, (iv) that the acceptance is for the honour of any part…