Business Law

When presentment for acceptance not necessary

Presentment for payment

Presentment for Acceptance is not necessary in the following cases:

  1. When the bill is payable on demand
    • A bill payable on demand need not be presented for acceptance before payment is demanded.
  2. When the bill is payable after sight and the drawee cannot be found
    • If the drawee cannot be found after a reasonable search, presentment for acceptance is excused.
  3. When the drawee is fictitious or incompetent to contract
    • If the drawee is imaginary or legally incapable of entering into a contract, presentment is unnecessary.
  4. When the drawee has expressly or impliedly waived presentment
    • If the drawee gives up the right to insist on presentment, it need not be made.
  5. When acceptance has been refused earlier
    • Once the drawee has already refused acceptance, there is no need to present the bill again.
  6. When presentment becomes impossible
    • Circumstances beyond the holder’s control, such as war, natural calamity, or other unavoidable events, may excuse presentment.

Short Exam Answer

Presentment for acceptance is not necessary when:

  • the bill is payable on demand,
  • the drawee cannot be found after reasonable search,
  • the drawee is fictitious or incompetent to contract,
  • presentment is waived,
  • acceptance has already been refused, or
  • presentment is impossible due to unavoidable circumstances.

These exceptions are provided under the provisions of the Negotiable Instruments Act, 1881 dealing with presentment for acceptance and its excuses.

Leave a comment

Your email address will not be published. Required fields are marked *