ADMS 2610 Lecture 10: Chapter 28
30 Sep 2015
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Document Summary
The bills of exchange act: pros of negotiable instrument, reduces the risk involved in transporting money from one place to another, may be used to create credit. Holder the person in possession of a negotiable instrument. The bill is stated to be payable on demand , or does not set out a time for payment. Payable without acceptance by the drawee: only if it is at the drawee"s place of residence or place of business. It is payable immediately on presentation: time bill, sight bill. Payable at sight (acceptance: three days grace given to time bill and sight bill. If payment is refused: the holder must act quickly to sue the drawer, acceptor, and endorsers. The holder must give the drawer and endorser an opportunity to pay the bill before taking action. To be valid, action must be taken within a business day of the dishonour. If there is no notice given, the drawer or endorser is discharged from liability.
