ACTIVITY-CHAPTER 5
1.Give and discuss the 5 requisites of Notice of Dishonor.
Ans.
A. To whom notice of dishonor must be given
Besides as thus in any case gave, when a negotiable instrument has been
shamed by renunciation or non-installment, notice of dishonor should be given to the
drawer and to every indorser, and any drawer or indorser to whom such notification
isn't given is released.
B. By whom given
The notification might be given by or for the holder, or by or in the interest of
any party to the instrument who may be constrained to pay it to the holder, and who,
after taking it up, would reserve a privilege to repayment from the party to whom the
notification is given.
C. Notice given by agent
Notice of dishonor might be given by any specialist either in his own name or
for the sake of any party qualified for pulled out, whether or not that party be his
head.
D. Effect of notice on behalf of holder
Where notice is given by or in the interest of the holder, it acclimates to the
advantage of every ensuing holder and all earlier gatherings who have a right of
response against the party to whom it is given.
E. Effect where notice is given by party entitled thereto
Where notice is given by or in the interest of a party qualified for pull out, it
acclimates to the advantage of the holder and all gatherings ensuing to the party to
whom notice is given.