PAYMENT SYSTEMS

BILLS OF EXCHANGE
GODWIN DJOKOTO ESQ
UGSOL, JULY 2023
 Bill of exchange
O A bill of exchange is issued by the creditor
and orders a debtor to pay a particular amount
within a given period of time
 BILLS OF EXCHANGE
O Regulated by the Bills of Exchange Act,
1961(Act 55)
O “A bill of exchange is an unconditional order
in writing, addressed by one person to another,
signed by the person giving it, requiring the
person to whom it is addressed to pay on
demand or at a fixed or determinable future
time a sum certain in money to or to the order
of a specified person, or to bearer.” S.1(1)
 BOE
O 1(2) An instrument which does not
comply with these conditions, or which
orders any act to be done in addition to
the payment of money, is not a bill of
exchange.
TERMINOLOGICAL ISSUES
O Drawer-The person who draws the bill and gives
the order for payment is called the “drawer”.
O Drawee-The person upon whom the bill is drawn,
and who is thereby ordered to pay.
O When the drawee indicates his willingness to pay,
he is then called the “acceptor”.
O The person identified in the bill as the person to or
to whose order the money is to be paid is called the
“payee”, or, if the bill is drawn payable to bearer,
and he is in possession of the bill, the “bearer”.
 TERMINOLOGICAL
O A bill payable to order is negotiated (meaning
transferred) by the endorsement of the payee (or
of a subsequent transferee) completed by
delivery. The person endorsing the bill is called
“endoser” and the person to whom it is
endorsed, the “endorsee”.
O A bill payable to bearer is negotiated by mere
delivery. The payee or an endorsee of a bill who
is in possession of it, or the bearer, is called the
“holder”.
Elements of Bill of Exchange
Unconditional order
The order given by the drawer to the drawee
must be unconditional. An order to pay ‘provided
funds are available’, or out of a particular fund,
would therefore not be a bill. S.1(3)
However, an unqualified order to pay, coupled
with an indication of a particular fund out of
which the drawee is to reimburse himself is not
conditional. S.1(3)
Unconditional order
Furthermore, an unqualified order to pay,
coupled with a statement of the transaction which
gives rise to the bill is not conditional. S.1(3)
An order directing payment to be made upon a
contingency is void. This is because it may or
may not occur. Therefore, an instrument
expressed to be payable on a contingency is not a
bill, and the happening of the contingency event
does not cure the defect. S.9(2). Eg. Pay Kofi
GHS1 Million if he marries.
 Writing
O The order to pay must be in writing, which includes print.
O The order must not be given orally.
O The bill does not have to be drawn on any particular
material.
O However, an electronic communication, such as an email or
electronic data interchange (EDI) message(SWIFT), can
satisfy the statutory requirement of writing. Standard
Chartered Bank Ghana Ltd v Victoria Island Properties
& Anz Grinlays Bank Ltd [2007-2008] SCGLR 721.

O The writing may be in any language and in any form of

words.
Addressed by one person to
another’
O The Bill of Exchange must be addressed by
the drawer to the drawee. The drawee must be
named or otherwise indicated in a bill with
reasonable certainty. S.4
O Drawer and Drawee will be the same person in
Bill of exchange in which the Drawer orders
to himself to pay to a Payee. In the above
example, if Company is Bank
Addressed by one person
O Where the drawee is a fictitious person or a
person not having capacity to contract or the
drawer and the drawee of a bill are the same
person, the holder may treat the instrument, at
his option, either as a bill of exchange or as a
promissory note. S.3
Signed by the person giving it’
O The validity of a bill of exchange or liability on a bill of exchange as
drawer, endorser, or acceptor is premised on signing the Bill. S.21

O The drawer may sign the bill personally or through an agent.

O If the signature of the drawer is forged or placed on the bill without his
authority, the signature is wholly inoperative. S.22. GNAT v SCB

O However, where a person signs a bill in a trade or assumed name, he is

liable thereon as if he had signed it in his own name. S.21

O Furthermore, no right to retain the bill or to give a discharge therefor or

to enforce payment thereof against any party thereto can be acquired
through or under a forged signature. S.22
 Signing a bill
O It may in appropriate circumstances be possible
for a person whose signature has been forged or
one whose signature has unlawfully been placed
on a bill to be estopped/precluded from setting
up the forgery or want of authority. S.22 Eg.
Greenwood v Martin’s Bank
O It is possible for a person to ratify an
unauthorised signature not amounting to a
forgery. S.22
Procuration signatures S.23
O Procuration from the latin “Pro curare” to take care of.
This is often shortened as “per pro” or “pp”.

O A person who is so authorized to sign on behalf of

another person may sign a bill. This is known as
procuration of signatures.

O A signature by procuration operates as notice that the

agent has but a limited authority to sign, and the principal
is only bound by such signature if the agent in so signing
was acting within the actual limits of his authority.
 Per pro cont’d
O Where a person signs a bill as drawer, endorser, or
acceptor, and adds words to his signature, indicating that he
signs for or on behalf of a principal, or in a representative
character, he is not personally liable thereon; but the mere
addition to his signature of words describing him as an
agent, or as filling a representative character, does not
exempt him from personal liability. S.24

O In determining whether a signature on a bill is that of the

principal or that of the agent by whose hands it is written,
the construction most favourable to the validity of the
instrument shall be adopted. S.24
 On demand or at a fixed or
determinable future time’
O A bill is payable on demand, (a) which is
expressed to be payable on demand, or at sight,
or on presentation; or (b) in which no time for
payment is expressed. S. 8
O A bill is payable at a fixed or determinable future
time (a) if it is expressed to be payable at a fixed
period after date or sight; or (b) on or at a fixed
period after the occurrence of a specified event
which is certain to happen, though the time of the
happening may be uncertain. S.9
 On demand ……
O The time of payment must be certain
according to the terms of the bill. Where the
time of payment is not certain from the face of
the instrument it will not be treated as a bill of
exchange.
O An Instrument expressed to be payable on a
contingency is not a bill, and the happening
of the event does not cure the defect. S.9
 To pay
O When drawee undertakes to pay he is called the acceptor.
O The acceptance of a bill is the signification by the drawee
of his assent to the order of the drawer. S.15
O An acceptance to pay must not express that the drawee
will perform his promise by any other means than the
payment of money. – Section 15(2)(b)
O The drawee is not liable to pay money to the payee or
holder of the bill until he accepts the bill. – Section 51.
O A verbal undertaken to pay is invalid. – Section 15(2)(a)
 Acceptance
O It must be written on the bill and be signed by the
drawee. Drawee’s mere signature on the bill, without
additional words, is sufficient. – Section 15(2)(a)
O A drawee who does not accept a bill is not liable on
the instrument – Section 51
O WHY?
O Because, a bill by itself does not operate as an
assignment of funds in the hands of the drawee
available for the payment thereof. – Section 51.
O The payee must be named or otherwise indicated
with reasonable certainty. – Section 5.
A sum certain in money’
O ‘Money includes legal tender and
foreign currency.
O According to Section 7(1) a sum is
certain even if it is required to be paid:
O With interest
O By stated instalments
A sum certain in money
O By stated instalments but with
provision on full becoming due on
default.
O According to an indicated rate of
exchange
O According to a rate of exchange to
be ascertained as directed by the
bill.
A sum certain in money
O Sums in words trump sums in figures in
cases of discrepancies. – Section 7(2)
O If figures are higher than words
evidence to explain difference is
inadmissible.
O Inaccurate but intelligible statement of
sum payable is valid. [Pound instead of
Pounds]
To or to the order of a specified
person or to bearer’-
O Where a bill is not payable to bearer, the payee
must be named or otherwise indicated therein
with reasonable certainty.
O Payment to the holder of an office for the time
being (president of the Law Students Union) is
permissible.
O Where the payee is a fictitious or non-existent
person the bill may be treated as payable to
bearer.
O
 To or to the order of a
specified person
O Such bills are referred to as order bills or bearer
bills
O The person so named in such bills is the payee
 NEGOTIATING A BILL

O A bill is negotiated when it is transferred from

one person to another in such a manner as to
constitute the transferee the holder of the
bill. S. 29(1).
O A bill payable to bearer is negotiated by
delivery s. 29(2).
O A bill payable to order is negotiated by the
endorsement of the holder completed by
delivery s.29 (3).
 Negotiation of a bill
O A bill may not be a negotiable instrument. Section
6(1) of Act 55 provides that when a bill contains
words prohibiting transfer or indicating an intention
that it should not be transferable, it is valid between
the parties thereto but it is not negotiable.
O However, the fact that an instrument is not
transferable does not derogate from it being a bill of
exchange. This is because Section 1 of Act 55 does
not mention negotiability in its definition of a bill
and Section 6(1) permits such limiting of
negotiability.
REQUIREMENTS OF NEGOTIABILITY

O Value must have been given - this is the principle of

consideration found in the law of contract and which
shows that the agreement of the parties is a bargain. S.
25(1) (a).
O If the present holder of the instrument has not himself
given value but some previous holder had done so, the
holder is a holder for value and he is given some
measure of protection. S. 25(2).
O Every party whose signature appears on the bill is
prima facie deemed to have given value s. 28(1).
 Reqs of negotiability
O The holder of the instrument must have
acted in good faith i.e. honestly, without
knowledge of any defect in title of a previous
holder. S. 90 of Act 55 says that a thing is
deemed to be done in good faith where it is in
fact done honestly, whether it is done
negligently or not.
 Reqs of negotiability
O The instrument must be complete and
regular – that is, the instrument must appear
to be in order on the face of it: It must not be
overdue or show signs of unauthorized
alterations.

O The instrument must be deliverable (i.e.,

capable of transfer by being physically handed
over).
Negotiation of bearer bills
O BEARER BILL AND ORDER BILL
O Sec. 6(2) provides that a bill may be payable either to
order or to bearer.
O If the document is payable to any person who holds it,
that is to the bearer, it can be negotiated, i.e.,
transferred with good title, merely by delivery.
O Sec 6 (3) provides that a bill is payable to bearer which
is expressed to be so payable or if the only or last
endorsement is an endorsement in blank then the bill
is a bearer bill. That is if the bill does not contain or
mention any name.
Negotiation of order bills
O Sec 6(4) of Act 55 provides that a bill is payable to
order which is expressed to be so payable or
expressed to be payable to a particular person.
In addition it must not contain words prohibiting
transfer or indicating an intention that is should
not be transferable. An order bill is negotiable and
thus freely transferable.
O The transferor negotiates the bill by signing on the
reverse side or indorse it in order to make the
instrument capable of being transferred by
delivery to the next holder.
 ENDORSEMENT

O Endorsement takes place when the name and/or the

signature of the transferor is written on the
instrument and it is completed by delivery to the
transferee. Instruments payable to order can only
be negotiated by endorsement of the holder and
completed by delivery.
O Where a bill purports to be endorsed conditionally,
the condition may be disregarded by the payer, and
the payment to the endorsee is valid whether or not
the condition is fulfilled. See Section 31 of Act 55.
CONDITIONS FOR ENDORSEMENT

O For endorsement to be effective it must satisfy

certain conditions. These conditions as laid down
in Section 30 of Act 55 include the following:-
O It must be written on the bill itself and signed by
the endorser. The simple signature of the endorser
on the bill without additional words is sufficient.
O NOTE: An endorsement on an allonge or on a
‘copy’ of a bill issued or negotiated in a country
where ‘copies’ are recognised, is deemed to be
written on the bill itself.
Conditions for endorsement
O It must be an endorsement of the entire bill. A
partial endorsement does not operate as a
negotiation of a bill. Thus an endorsement which
purports to transfer to the endorsee a part only of
the amount payable, or which purports to transfer
the bill to two or more endorsees severally is not
an effective or valid negotiation.
Conditions of endorsement
O Where a bill is payable to two or more payees or
endorsees who are not partners, all must endorse,
unless the one endorsing has authority to endorse for
the others.
O Where, in a bill payable to order, the payee or endorsee
is wrongly designated or his name is mis-spelt, he may
endorse the bill as therein described, adding, if he
thinks fit, his proper signature.
O Where there are two or more endorsements on a bill,
each endorsement is deemed to have been made in the
order in which it appears on the bill, until the contrary
is proved.
 TYPES OF ENDORSEMENT

O An endorsement may be made in blank or special or

contain terms making it restrictive.
O BLANK ENDORSEMENT
O An endorsement in blank specifies no endorsee. Section
32(1)
O A bill endorsed in blank becomes payable to bearer. See
Sections 6(3)&32(1)
O However, a bill endorsed in blank may be converted,
by any holder, into a special endorsement by writing
above the endorser’s signature a direction to pay the
bill to or to the order of himself or some other person.
 SPECIAL ENDORSEMENT

O A special endorsement specifies the person to

whom, or to whose order, the bill is to be
payable.
O A bill endorsed in blank may be converted, by
any holder, into a special endorsement by
writing above the endorser’s signature a
direction to pay the bill to or to the order of
himself or some other person.
RESTRICTIVE ENDORSEMENT

O According to Section 33(1), an endorsement is

restrictive if it:-
O Prohibits the further negotiation of the bill; or
O Expresses that it is a mere authority to deal
with the bill as thereby directed, and not a
transfer of the ownership thereof.
O Examples:
O Pay Kofi Mensah only
O Pay Kofi Mensah for the account of Yaw Baah
Restrictive endorsement
O According to Section 33(2) of Act 55, a
restrictive endorsement gives the endorsee the
right to:
O (i) Receive payment of the bill
O (ii) Sue any party thereto that his endorser
could have sued.
Restrictive endorsement
O However, a restrictive endorsement does not give
the endorsee any power to transfer his rights,
unless the restrictive endorsement expressly
authorizes the endorsee to do so. (See Section
33(2) of Act 55).
O Where a restrictive endorsement authorizes
further transfer, all subsequent endorsees take the
bill with the same rights and subject to the same
liabilities of the first endorsee under the
restrictive endorsement. Section 33(3) of Act 55.
HOLDER, HOLDER FOR VALUE, HOLDER IN DUE COURSE

O HOLDER means the payee or endorsee of a bill or

note who is in possession of it, or the bearer thereof”.
S.97
O A person in possession of an unendorsed order bill is
not a holder, though he gave value for the bill, and
cannot sue in his own name.
O However, by Section 29(4), such a person in
possession of an unendorsed order bill, has the right
to have the bill endorsed to him (Section 29(4)), and
will become holder as from the date of endorsement,
if subsequently made.
 Rights of the Holder. S.36

O The rights and powers of the holder of a bill

are as follows—
O (a) He may sue on the bill in his own name.
O (c) Where his title is defective (i) if he
negotiates the bill to a holder in due course,
that holder obtains a good and complete title
to the bill, and (ii) if he obtains payment of
the bill the person who pays him in due course
gets a valid discharge for the bill.
 HOLDER FOR VALUE

O Holder means a payee or endorsee or a bearer of a bill. S.97

O Value means valuable consideration. SS. 25 & 97
O Valuable consideration may be constituted by any
consideration sufficient to support a simple contract
including past consideration Section. 25(1)(a)&(b).
O A holder for value on the basis of these sections is a person
who holds or is in possession of a bill for which
consideration has been given by the holder or someone
else.
O Section 25(2) shows that the holder for value does not
himself need to give consideration.
 HOLDER FOR VALUE
O Also, every party whose signature appears on
the bill is prima facie deemed to have given
value. Section 28(1).
O Also, a person may have knowledge of a
defect in the bill and still be a holder for value
but such a person cannot be a holder in due
course.
 HOLDER IN DUE COURSE

O Section 27(1) of Act 55 defines a holder in due course as

follows:-
O A holder in due course is a holder who has taken a bill, complete
and regular on the face of it, under the following conditions,
namely that:
O (a) he became the holder of it before it was overdue(see S.34
on meaning), & without notice that it had been previously
dishonoured, if such was the fact; or
O (b) he took the bill in good faith and for value, & that at the
time the bill was negotiated to him he had no notice of any
defect in the title of the person who negotiated it.
O A holder in due course holds the bill free from any defects in
title of prior parties.
HOLDER IN DUE COURSE
O Section 27(2) lists some examples of acts that
my cause a defect in title:
O When the person negotiating the bill obtained it
or acceptance thereof by
O Fraud
O Duress
O Force and fear
O Other Unlawful means
O Or for an illegal consideration
O Or when he negotiates it in breach of faith
O Or such circumstance that amounts to fraud
 Holder in due course
O Where he is a holder in due course, he holds the bill free
from any defect of title of prior parties, as well as from
mere personal defences available to prior parties among
themselves, and may enforce payment against all parties
liable on the bill. S. 36(b)
O BHARWANI v. MANSOUR AND SONS [1963] 2 GLR
349-352 holding (3) Sowah J held that While an endorsee
of an overdue bill of exchange takes it subject to all
equities in respect of the bill, such equities must, however,
be attached to the bill itself and not to the parties. The
right of set-off claimed by the defendants was not an equity
attaching to the bill, in this case, the promissory note.
Diab v Quansah[1974] 1GLR 101
O The effect of section 28 (2) of Act 55 was that
although every holder of a bill was to be deemed to
be a holder in due course, if evidence was given to
show that there was fraud, illegality or duress in the
negotiation of the bill, the onus of proof that value
had in good faith been given for the bill was shifted
to the holder. The holder in that case would no
longer be deemed to be a holder in due course; and
he would have to prove not only that value was given
but also that it was given honestly and without
suspicion of fraud, illegality and duress.
HOLDER IN DUE COURSE
O The person to whom a current and
apparently regular negotiable instrument
has been negotiated, who takes it in good
faith and for value, obtains a good title to it
even though his transferor had a defective
title or no title to it. Section 36(b)&(c).
 CHEQUES

O Sections 72 to 82 of Act 55 particularly deal with

cheques.

O A cheque is a bill of exchange drawn on a banker

payable on demand. Section 72
O Bill of Exchange “A bill of exchange is an unconditional
order in writing, addressed by one person to another,
signed by the person giving it, requiring the person to
whom it is addressed to pay on demand or at a fixed or
determinable future time a sum certain in money to or to
the order of a specified person or to bearer.”
Characteristics of cheques
O IT MUST BE AN ORDER
O THE ORDER MUST BE UNCONDITIONAL
O IT MUST BE IN WRITING
O ADDRESSED BY ONE PERSON TO A BANKER
O SIGNED BY THE PERSON GIVING IT
O DRAWN ON A BANKER
O PAYABLE ON DEMAND
O REQUIRING THE BANKER TO PAY
O ON DEMAND
O A SUM CERTAIN IN MONEY
O TO THE ORDER OF A SPECIFIED PERSON OR
O TO BEARER
IS A BANKER’S DRAFT A CHEQUE?

O Section 82(b)
O “Any draft payable on demand drawn by a
banker upon himself, whether payable at the
head office or some other office of his bank;”
is considered a cheque; and the provisions of
Sections 75 to 81 of Act 55 relating to cheques
shall apply to such drafts and have effect in
relation to such drafts, as they have effect in
relation to cheques.
CAN OTHER DOCUMENTS SUBSTITUTE A CHEQUE?

O Section 82(a)
O “Any document issued by a customer of a
banker which, though not a cheque, is intended
to enable a person to obtain payment from that
banker of the sum mentioned in the document;”
is considered a cheque; and the provisions of
Sections 75 to 81 of Act 55 relating to cheques
shall apply to such documents and have effect
in relation to them, as they have effect in
relation to cheques. Eg a withdrawal slip
 TYPES OF CHEQUES
O CROSSED CHEQUES
O A cheque may be opened or crossed.
O A crossed cheque is one which has two
parallel transverse lines drawn across its face
with or without words written on it in addition
to the crossing.
O When a cheque is crossed it can only be paid
to a banker.
Statutory definition of crossed
cheques S.75
O (1) Where a cheque bears across its face an
addition of—
O (a) the words "and company" or any abbreviation
thereof between two parallel transverse lines,
either with or without the words "not negotiable";
or
O (b) two parallel transverse lines simply, either
with or without the words "not negotiable,"
O that addition constitutes a crossing, and the
cheque is crossed generally.
Sample of crossed cheque
Sample of crossed cheque
 TYPES OF CROSSING

O General crossing
O Where the cheque contains the two parallel
lines simply it is a general crossing.. 75(1)(b)
O Where the cheque contains the two parallel
lines with the words “not negotiable” it is a
general crossing. Section 75(1) (b)
O Where the cheque contains the two parallel
lines plus the words “and company” or any
abbreviation of same between the two parallel
lines it is a general crossing. 75(1) (a)
 Special crossing

O A special crossing is one which bears across its

face an addition of the name of a banker, with
the words “not negotiable” S. 75(2).
O According to Section 78(1), a specially crossed
cheque is specific to the banker named and no
other unless it is crossed to an agent for
collection and that agent happens to be a
banker.
O A specially crossed cheque must be presented
for payment through the named bank.
Duties of Banker as to Crossed Cheques, S.78

O Where a cheque is crossed specially to more than one

banker, except when crossed to an agent for collection
being a banker, the banker on whom it is drawn shall
refuse payment thereof.
O Where the banker on whom a cheque is drawn which is
so crossed nevertheless pays the same, or pays a cheque
crossed generally otherwise than to a banker, or if
crossed specially otherwise than to the banker to whom
it is crossed, or his agent for collection being a banker,
he is liable to the true owner of the cheque for any loss
he may sustain owing to the cheque having been so paid:
Duties of a bank on a crossed
cheque
O Provided that where a cheque is presented for payment
which does not at the time of presentment appear to be
crossed, or to have had a crossing which has been
obliterated, or to have been added to or altered
otherwise than as authorised by this Act, the banker
paying the cheque in good faith and without negligence
shall not be responsible or incur any liability, nor shall
the payment be questioned by reason of the cheque
having been crossed, or of the crossing having been
obliterated, or having been added to or altered
otherwise than as authorised by this Act,
 Collecting banker
O A collecting banker is one who receives
payment on behalf of a customer of the bank.
O He is an agent of the customer. He collects
cheques paid on behalf of the customer into
the customer’s account
 Protection to Collecting
Banker. S.81
O Where a banker in good faith and without negligence—
O (a) receives payment for a customer of a cheque, whether
crossed or uncrossed; or
O (b) having credited a customer's account with the amount
of such a cheque, receives payment thereof for himself;
O and the customer has no title or a defective title to the
cheque, the banker does not incur any liability to the true
owner of the cheque by reason only of having received
payment thereof.
O SCB v Victoria Island Properties & Anz Grinlays Bank
Ltd [2007-08] SCGLR 721
 PROMISSORY NOTES
Promissory Note Defined. S.83
O (1) A promissory note is an unconditional promise
in writing made by one person to another signed by
the maker, engaging to pay, on demand or at a fixed
or determinable future time, a sum certain in money,
to, or to the order of, a specified person or to bearer.
O (2) An instrument in the form of a note payable to
maker's order is not a note within the meaning of
this section unless and until it is endorsed by the
maker.
 BOARD OF DIRECTORS OF ORTHODOX
SECONDARY SCHOOL OF PEKI v. TAWLMA-
ABELS [1974] 1 GLR 419-429
O The plaintiffs claimed against the defendant the sum
of N¢3,321.64 allegedly due and owing from the
defendant to the school which remained unpaid
despite repeated demands.
O Attached to the writ was a document, exhibit A,
described as a promissory note, signed by the
defendant. The document read as follows:
"I accept responsibility for the deficit of N
¢3,321.64 ... being fees collected to 1st term 1967/68
and promised [sic] to pay by monthly instalment [sic]
as the Board may determine."
 BOARD OF DIRECTORS OF ORTHODOX
SECONDARY SCHOOL OF PEKI v. TAWLMA-ABELS
[1974] 1 GLR 419-429

O Exhibit A was not a promissory note within

the meaning of the Bills of Exchange Act,
1961 (Act 55), because neither the
commencement date for the monthly
instalments nor the quantum of the monthly
instalments payable had been fixed.
 Sabblah v Tawiah
O Held that a receipt written “Received from
Sablah of UAC ,No. 3, Ho, the sum of 250
pounds on loan and thus promising to refund
the same in short possible time” was held not
to constitute a promissory note because
payment was neither fixed or determinable
 Williamson v Rider
O A document that was expressed to be payable
“on or before” a stated date introduced
uncertainty and therefore did not qualify as a
promissory note.
 PROMISSORY NOTES
O (3) A note is not invalid by reason only that it
contains also a pledge of collateral security
with authority to sell or dispose thereof.
O (4) A note which is, or on the face of it
purports to be, both made and payable within
Ghana is an inland note. Any other note is a
foreign note.
Liability of a maker of a Note
O By making a Promissory Note the maker engages
that he will pay according to the tenor of the Note
and the Maker is precluded from denying to a holder
in due course the existence of the payee and his
capacity to endorse the Note. Section 88
O In Busumakura II v Yankum SC held that (2)
Where a holder of a traditional office under a stool
signs a promissory note in his capacity as such with
full knowledge of the contents thereof there is a
prima facie presumption that the stool is bound by
his act.
Consideration presumed
O Valuable consideration for a promissory note
is presumed unless the contrary is proved.
O Busumakura II v Yankum the SC held that the
Plaintiff did not have to prove that he gave
consideration for a promissory note issued by
some traditional rulers.

O See also Sarkis Ltd v Timber & Transport

Delivery of promissory note S. 84
etc
O A promissory note is completed by delivery to
the payee or bearer. A promissory note is
inchoate and incomplete until delivery thereof
to the payee or bearer. S.84
O A Note may be made by two or more makers
who may be liable on it jointly and severally. S.
85(1)
O If a Note is payable at a particular place it must
be presented for payment at that place in order
to render the maker liable. S.87
 DIFF
O A bill of exchange is issued by the creditor
and orders a debtor to pay a particular amount
within a given period of time. The promissory
note, on the other hand, is issued by the debtor
and is a promise to pay a particular amount of
money in a given period. A cheque is a form
of a Bill of exchange however it is payable on
demand only.