Mercantile Law

Presentment means presenting a Negotiable Instruments for

Acceptance, Sight , or Payment before Acceptor, Maker , Drawee or the
Third Party Liable thereon by the Holder.

Kinds Of presentment:

 Presentment for Acceptance

 Presentment for Sight
 Presentment for Payment
Acceptance means acknowledgement of the sum mentioned in a bill
by the drawee or any other person on his behalf.

No Need For Presentment:

 Bill Payable on Demand
 Bill payable on Expiry Date
 Bill payable on a Fixed Date
Need For Presentment:
 Bill payable at specified period after sight
 Bill having Express Stipulation
 Must be written
 Must be signed by drawee
 Must be appeared on bill
 Must be delivered to holder

Types of Acceptance:
 General Acceptance
Without condition
 Qualified Acceptance
With some conditions
IKHTSAR ANSARI
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 Who may Present
 The holder himself
 Authorized Agent of Holder
 Endorsee in case of Endorsement
Who may Accept
 The drawee or his Authorized
Agent
 All Drawees in Case of several
drawees
 Legal representatives
 Official receiver
 Drawee in case of need
 An Acceptor for honor
Time for Presentment Place for Presentment

 With in business days and  As mentioned on the bill

hours
 At usual place
 With in reasonable time
 At the residence of drawee
 Period as mentioned on bill

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Necessary Presentment Unnecessary Presentment
for Acceptance for Acceptance

 In case of Death and

 A bill of exchange in
order to fix the acceptor
with liability must be
presented for acceptance
before it is presented for
payment.
Insolvency of Drawee
 In case of Fictitious
 In Case of Incapability of
Drawee
 When Drawee remains Unfind
after a reasonable Search

Effect of Non-Presentment
When presentment for acceptance is necessary and holder commits
default in making such presentment, all the parties thereon are
discharged from their liability to such holder.
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 Presentment for Sight is necessary in case of note which is made
payable at a certain period to ascertain the maturity

Rules
 Demand of Payment

 Fixation of Maturity

 Dishonoring of Note after a reasonable search

 Time of presentment

 In case of default
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The promissory note , bill of exchange and
cheque must be presented for payment to the
maker , acceptor or drawee by or on behalf of
the holder. On default of such presentment ,the
maker or acceptor or drawee is not liable to
pay

Rules of Presentment For Payment

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 Hours For Presentment
during usual hours
 Instruments Payable after Date or Sight
made payable at a specified period
presented for payment at maturity
 Promissory Note Payable By Installments
3rd day after the date fixed for payment

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Place of Presentment
 Specified place…
 does not indicate specified place then
presented on at ordinary residence.
 No residence then presented wherever he
can be found

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Presentment of cheque
 Cheque must be Presented at bank before
alternation of relation

 Presented at Reasonable Time after its issue

 If not,and drawer suffers loss due to delay then

discharged to the extent.
 Instrument Payable on demand
 Agent, legal Heir or Assignee
 Excuse for Delay in presentment
 Right of Holder
 Intentionally prevention of presentment of
instrument
 Payer’s Place of business
 Specified place
 Not on specified place
 Promise without presentment
 Right to receive payment
 Drawer did not suffer damages by non payment
 Dishonor by non acceptance
 Drawee is fictitious person
 Drawer and drawee are same person
 Impossible to present the instrument

Payment for Honor

Rights of payer for Honor