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Section 65, 66, 67, 68 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Acceptance and Payment for Honour] of the Act.
Section 65 Bill of Exchange Act 1990
(Acceptance for honour supra protest)
(1) Where a bill of exchange has been protested for dishonour by non-acceptance, or protested for better security, and is not overdue, any person, not being a party already liable thereon, may, with the consent of the holder, intervene and accept the bill supra protest, for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.
(2) A bill may be accepted for honour for part only of the sum for which it is drawn.
(3) An acceptance for honour supra protest in order to be valid must-
(a) be written on the bill, and indicate that it is an acceptance for honour;
(b) be signed by the acceptor for honour.
(4) Where an acceptance for honour does not expressly state for whose honour it is made, it is deemed to be an acceptance for the honour of the drawer.
(5) Where a bill payable after sight is accepted for honour, its maturity is calculated from the date of the noting for non-acceptance, and not from the date of the acceptance for honour.
Section 66 Bill of Exchange Act 1990
(Liability of acceptor for honour)
(1) The acceptor for honour of a bill by accepting it engages that he will, on due presentment, pay the bill according to the tenor of his acceptance, if it is not paid by the drawee, provided it has been duly presented for payment, and protested for non-payment, and that he receives notice of these facts.
(2) The acceptor for honour is liable to the holder and to all the parties to bill subsequent to the party for whose honour he has accepted.
Section 67 Bill of Exchange Act 1990
(Presentment to acceptor for honour)
(1) Where a dishonoured bill has been accepted for honour supra protest or contains a reference in case of presented for non-payment before it is presented for payment to the acceptor for honour, or referee in case of need.
(2) Where the address of the acceptor for honour is in the same place where the bill is protested for non-payment, the bill must be presented to him not later than the day following its maturity; and where the address of the acceptor for honour is in some place other than the place where it was protested for non-payment, the bill be forwarded not later than the day following its maturity for presentment to him.
(3) Delay in presentment or non-presentment is excused by any circumstance which would excuse delay in presentment for payment or non-presentment for payment.
(4) When a bill of exchange is dishonoured by the acceptor for honour it must be protested for non-payment by him.
Section 68 Bill of Exchange Act 1990
(Payment for honour supra protest)
(1) Where a bill has been protested for non-payment, any person may intervene and pay it supra protest for the honour of any party liable thereon, or for the honour of the person for whose account the bill is drawn.
(2) Where two or more persons offer to pay a bill for the honour of different parties, the person whose payment will discharge most parties to the bill shall have the preference.
(3) Payment for honour supra protest in order to operate as such and not as a mere voluntary payment, must be attested by a notarial act of honour which may be appended to the protest or form an extension of it.
(4) The notarial act of honour must be founded on a declaration made by the payer for honour, or his agent in that behalf, declaring his intentions to pay the bill for honour, and for whose honour he pays.
(5) Where a bill has been paid for honour, all parties subsequent to the party for whose honour it is paid are discharged, but the payer for honour is subrogated for, and succeeds to both the rights and duties of, the holder as regards the party for whose honour he pays, and all parties liable to that party.
(6) The payer for honour on paying to the holder the amount of the bill and the notarial expenses incidental to its dishonour is entitled to receive both the bill itself and the protest. If the holder do not on demand deliver them up he shall be liable to the payer for honour in damages.
(7) Where the holder of a bill refuses payment supra protest he shall lose his right of recourse against any party who would have been discharged by such payment.
Section 59, 60, 61, 62, 63, 64 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Discharge of Bill] of the Act.
Section 59 Bill of Exchange Act 1990
(Payment in due course)
(1) A bill is discharged by payment in due course by or on behalf of the drawee or acceptor.
(2) “Payment in due course” means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective.
(3) Subject to the provisions hereinafter contained, when a bill is paid by the drawee or an endorser it is not discharged; but-
(a) where a bill payable to, or to the order of, a third party is paid by the drawer, the drawer may enforce payment thereof against the acceptor, but may not reissue the bill;
(b) where a bill is paid by an endorser, or where a bill payable to drawer’s order is paid by the drawer, the party paying it is remitted to his former rights as regards the acceptor or antecedent parties, and he may, if he thinks fit, strike out his own and subsequent endorsements, and again negotiate the bill.
(4) Where an accommodation bill is paid in due course by the party accommodated the bill is discharged.
Section 60 Bill of Exchange Act 1990
(Banker paying demand draft whereon endorsement is forged)
(1) When a bill payable to order on demand is drawn on a banker, and the banker on whom it is drawn pays the bill in good faith and in the ordinary course of business, it is not incumbent on the banker to show that the endorsement of the payee or any subsequent endorsement was made by or under the authority of the person whose endorsement it purports to be, and the banker is deemed to have paid the bill in due course, although such endorsement has been forged or made without authority.
(2) A draft or order drawn by a banker on the head office or a branch of his bank in Nigeria for a sum of money payable to order on demand shall be deemed to be a bill for the purposes of this section.
Section 61 Bill of Exchange Act 1990
(Acceptor the holder at maturity)
When the acceptor of a bill is or becomes the holder of it, at or after its maturity, in his own right, the bill is discharged.
Section 62 Bill of Exchange Act 1990
(Express waiver)
(1) When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor, the bill is discharged and the renunciation must be in writing unless the bill is delivered up to the acceptor.
(2) The liabilities of any party to a bill may in like manner be renounced by the holder before, at, or after its maturity; but nothing in this section shall affect the rights of a holder in due course without notice of the renunciation.
Section 63 Bill of Exchange Act 1990
(Cancellation)
(1) Where a bill is intentionally cancelled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged.
(2) In like manner any party liable on a bill may be discharged by the intentional cancellation of his signature by the holder or his agent. In such case any endorser who would have had a right of recourse against the party whose signature is cancelled, is also discharged.
(3) A cancellation made unintentionally, or under a mistake, or without the authority of the holder is inoperative; but where a bill or any signature thereon appears to have been cancelled the burden of proof lies on the party who alleges that the cancellation was made unintentionally, or under a mistake, or without authority.
Section 64 Bill of Exchange Act 1990
(Alteration of bill)
(1) Where a bill or acceptance is materially altered without the assent of all parties liable on the bill, the bill is avoided except as against a party who has himself made, authorised, or assented to the alteration, and subsequent endorsers:
Provided that, where a bill has been materially altered, but the alteration is not apparent, and the bill is in the hands of a holder in due course, such holder may avail himself of the bill as if it had not been altered, and may enforce payment of it according to its original tenor.
(2) In particular the following alterations are material, namely, any alteration of the date, the sum payable, the time of payment, the place of payment, and where a bill has been accepted generally, the addition of a place of payment without the acceptor’s assent.
Section 53, 54, 55, 56, 57, 58 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Liabilities of Parties] of the Act.
Section 53 Bill of Exchange Act 1990
(Bill not assignment of funds in hands of drawee)
A bill, of itself, does not operate as an assignment of funds in the hands of the drawee available for the payment thereof, and the drawee of a bill who does not accept as required by this Act is not liable on the instrument.
Section 54 Bill of Exchange Act 1990
(Liability of acceptor)
The acceptor of a bill by accepting it –
(a) engages that he will pay it according to the tenor of his acceptance;
(b) is precluded from denying to a holder in due course –
(i) the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill,
(ii) in the case of a bill payable to drawer’s order, the then capacity of the drawer to endorse, but not the genuineness or validity of his endorsement,
(iii) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to endorse, but not the genuineness or validity of his endorsement.
Section 55 Bill of Exchange Act 1990
(Liability of drawer or endorser)
(1) The drawer of a bill by drawing it –
(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or an endorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;
(b) is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse.
(2) The endorser of a bill by endorsing it-
(a) engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or a subsequent endorser who is compelled to pay it, provided that the requisite proceedings on dishonour be duly taken;
(b) is precluded from denying to a holder in due course the genuineness and regularity. in all respects of the drawer’s signature and all previous endorsements; (c) is precluded from denying to his immediate or a subsequent endorsee that the bill was at the time of his endorsement a valid and subsisting bill, and that he had then a good title thereto.
Section 56 Bill of Exchange Act 1990
(Stranger signing bill liable as endorser)
Where a person signs a bill otherwise than as a drawer or acceptor, he thereby incurs the liabilities of an endorser to a holder in due course.
Section 57 Bill of Exchange Act 1990
(Measure of damages against parties to dishonoured bill)
Where a bill is dishonoured, the measure of damages, which shall be deemed to be liquidated damages, shall be as follows �
(a) the holder may recover from any party liable on the bill, and the drawer who has been compelled to pay the bill may recover from the acceptor, and an endorser who has been compelled to pay the bill, may recover from the acceptor or from the drawer, or from a prior endorser–
(i) the amount of the bill,
(ii) interest thereon from the time of presentment for payment if the bill is payable on demand, and from the maturity of the bill in any other case,
(iii) the expenses of noting, or when protest is necessary, and the protest has been extended, the expenses of protest;
(b) in the case of a bill which has been dishonoured abroad, in lieu of the above damages, the holder may recover from the drawer or an endorser, and the drawer or an endorser who has been compelled to pay the bill may recover from any party liable to him, the amount of the re-exchange with interest thereon until the time of payment;
(c) where by this Act interest may be recovered as damages, such interest may, if justice require it, be withheld wholly or in part, and where a bill is expressed to be payable with interest at a given rate, interest as damages may or may not be given at the same rate as interest proper.
Section 58 Bill of Exchange Act 1990
(Transferor by delivery and transferee)
(1) Where the holder of a bill payable to bearer negotiates it by delivery without endorsing it, he is called a transferor by delivery.
(2) A transferor by delivery is not liable on the instrument.
(3) A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee being a holder for value that the bill is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any fact which renders it valueless.
Section 46, 47, 48, 49, 50, 51, 52 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – General Duties of the Holder] of the Act, among other sections.
Section 46 Bill of Exchange Act 1990
(Excuses for delay or non-presentment for payment)
(1) Delay in making presentment for payment is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence; and when the cause of delay ceases to operate, presentment must be made with reasonable diligence.
(2) Presentment for payment is dispensed with-
(a) where, after the exercise of reasonable diligence, presentment, as required by this Act, cannot be effected; and the fact that the holder has reason to believe that the bill will, on presentment, be dishonoured, does not dispense with the necessity for presentment;
(b) where the drawee is a fictitious person;
(c) as regards the drawer, where the drawee or acceptor is not bound, as between himself and the drawer, to accept or pay the bill, and the drawer has no reason to believe that the bill would be paid if presented;
(d) as regards an endorser, where the bill was accepted or made for the accommodation of that endorser, and he has no reason to expect that the bill would be paid if presented;
(e) by waiver of presentment, express or implied.
Section 47 Bill of Exchange Act 1990
(Dishonour by non-payment)
(1) A bill is dishonoured by non-payment –
(a) When it is duly presented for payment and payment is refused or cannot be obtained or, where an advice is sent through the post office in pursuance of subsection (3) of section 45 of this Act, payment is not obtained –
(i) in the case of a bill not payable on demand on or before the date the bill falls due; or
(ii) in the case of a bill payable on demand, within ten days from the time the advice is posted.
(b) when presentment is excused and the bill is overdue and unpaid.
(2) Subject to the provisions of this Act, when a bill is dishonoured by non-payment, an immediate right of recourse against the drawer and endorsers accrues to the holder.
Section 48 Bill of Exchange Act 1990
(Notice of dishonour and effect of non-notice)
Subject to the provisions of this Act, when a bill has been dishonoured by non-acceptance or by non-payment, notice of dishonour must be given to the drawer and each endorser, and any drawer or endorser to whom such notice is not given is discharged:
Provided that –
(a) where a bill is dishonoured by non-acceptance, and notice of dishonour is not given, the rights of a holder in due course subsequent to the omission shall not be prejudiced by the omission;
(b) where a bill is dishonoured by non-acceptance, and due notice of dishonour is given, it shall not be necessary to give notice of a subsequent dishonour by nonpayment unless the bill shall in the meantime have been accepted.
Section 49 Bill of Exchange Act 1990
(Rules as to notice of dishonour)
Notice of dishonour, in order to be valid and effectual, must be given in accordance with the following rules, that is-
(a) the notice must be given by or on behalf of the holder, or by or on behalf of an endorser, who, at the time of giving it, is himself liable on the bill;
(b) notice of dishonour may be given by an agent either in his own name or in the name of any party entitled to give notice whether that party be his principal or not
(c) where the notice is given by or on behalf of the holder, it ensures for the benefit of all prior endorsers who have a right of recourse against the party to whom it is given;
(d) where notice is given by or on behalf of an endorser, entitled to give notice as hereinbefore provided, it ensures for the benefit of the holder and all endorsers subsequent to the party to whom notice is given
(e) the notice may be given in writing or by personal communication and may be given in any terms which sufficiently identify the bill, and intimate that the bill has been dishonoured by non-acceptance or non-payment;
(f) the return of a dishonoured bill to the drawer or an endorser is, in point of form, deemed a sufficient notice of dishonour;
(g) a written notice need not be signed and an insufficient written notice may be supplemented and validated by verbal communication; and a misdescription of the bill shall not vitiate the notice unless the party to whom the notice is given is in fact misled thereby;
(h) where notice of dishonour is required to be given to any person, it may be given either to the party himself, or to his agent in that behalf;
(i) where the drawer or endorser is dead, and the party giving notice knows it, the notice must be given to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found;
(j) where the drawer or endorser is bankrupt or insolvent, notice may be given either to the party himself or to the trustee or official assignee;
(k) where there are two or more drawers or endorsers who are not partners, notice must be given to each of them, unless one of them has authority to receive such notice for the others;
(l) the notice may be given as soon as the bill is dishonoured and must be given within a reasonable time thereafter; and in the absence of special circumstances, notice shall not deemed to have been given within a reasonable time unless–
(i) where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dishonour of the bill,
(ii) where the person giving and the person to receive notice reside in different places, the notice is sent off on the day after the dishonour of the bill, if there be a post at a convenient hour on that day, and if there be no such post on that day then by the next post thereafter;
(m) where a bill when dishonoured is in the hands of an agent, he may either himself give notice to the parties liable on the bill, or he may give notice to his principal; and if he gives notice to his principal, he must do so within the same time as if he were the holder, and the principal upon receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder;
(n) where a party to a bill receives due notice of dishonour, he has, after the receipt of such notice, the same period of time for giving notice to antecedent parties that the holder has after the dishonour;
(o) where a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.
Section 50 Bill of Exchange Act 1990
(Excuses for non-notice and delay)
(1) Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice, and not imputable to his default, misconduct, or negligence. When the cause of delay ceases to operate the notice must be given with reasonable diligence.
(2) Notice of dishonour is dispensed with –
(a) when, after the exercise of reasonable diligence, notice as required by this Act cannot be given to or does not reach the drawer or endorser sought to be charged;
(b) by waiver express or implied; and notice of dishonour may be waived before the time of giving notice has arrived, or after the omission to give due notice;
(c) as regards the drawer in the following cases-
(i) where drawer and drawee are the same person,
(ii) where the drawee is a fictitious person or a person not having capacity to contract,
(iii) where the drawer is the person to whom the bill is presented for payment,
(iv) where the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill,
(v) where the drawer has countermanded payment;
(d) as regards the endorser in the following cases-
(i) where the drawee is a fictitious person or a person not having capacity to contract and the endorser was aware of the fact at the time he endorsed the bill,
(ii) where the endorser is the person to whom the bill is presented for payment,
(iii) where the bill was accepted or made for his accommodation.
Section 51 Bill of Exchange Act 1990
(Noting of protest of bill)
(1) Where an inland bill has been dishonoured, it may, if the holder think fit, be noted for non-acceptance or non-payment, as the case may be; but it shall not be necessary to note or protest any such bill in order to preserve the recourse against the drawer or endorser.
(2) Where a foreign bill, appearing on the face of it to be such, has been dishonoured by non-acceptance, it must be duly protested for non-acceptance, and where such a bill, which has not been previously dishonoured by non-acceptance, is dishonoured by non-payment it must be duly protested for non-payment. If it be not so protested the drawer or endorsers are discharged. Where a bill does not appear on the face of it to be a foreign bill, protest thereof in case of dishonour is unnecessary.
(3) A bill which has been protested for non-acceptance may be subsequently protested for non-payment.
(4) Subject to the provisions of this Act, when a bill is noted or protested, it must be noted on the day of its dishonour or on the next succeeding business day thereafter. When a bill has been duly noted, the protest may be subsequently extended as of the date of the noting.
(5) Where the acceptor of a bill becomes bankrupt or insolvent or suspends payment before it matures, the holder may cause the bill to be protested for better security against the drawer and endorsers.
(6) A bill must be protested at the place where it is dishonoured:
Provided that –
(a) when a bill is presented through the post office, and returned by post dishonoured it may be protested at the place to which it is returned and on the day of its return if received during business hours, and if not received during business honours, then not later than the next business day;
(b) when a bill drawn payable at the place of business or residence of some person other than the drawee, has been dishonoured by non-acceptance, it must be protested for non-payment at the place where it is expressed to be payable, and no further presentment for payment to, or demand on, the drawee is necessary.
(7) A protest must contain a copy of the bill, and must be signed by the notary making it, and must specify –
(a) the person at whose request the bill is protested;
(b) the place and date of protest, the cause or reason for protesting the bill, the demand made, and the answer given, if any, or the fact that the drawee or acceptor could not be found.
(8) Where a bill is lost or destroyed, or is wrongly detained from the person entitled to hold it, protest may be made on a copy or written particulars thereof.
(9) Protest is dispensed with by any circumstance which would dispense with notice of dishonour. Delay in noting or protesting is excused when the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct, or negligence; when the cause of delay ceases to operate, the bill must be noted or protested with reasonable diligence.
Section 52 Bill of Exchange Act 1990
(Duties of holder as regards acceptor)
(1) When a bill is accepted generally, presentment for payment is not necessary in order to render the acceptor liable.
(2) When by the terms of a qualified acceptance presentment for payment is required, the acceptor, in the absence of an express stipulation to that effect, is not discharged by the omission to present the bill for payment on the day that it matures.
(3) In order to render the acceptor of a bill liable it is not necessary to protest it, or that notice of dishonour should be given to him.
(4) Where the holder of a bill presents it for payment, he shall exhibit the bill to the person from whom he demands payment, and when a bill is paid the holder shall forthwith deliver it up to the party paying it.
Section 39, 40, 41, 42, 43, 44, 45 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – General Duties of the Holder] of the Act, among other sections.
Section 39 Bill of Exchange Act 1990
(When presentment for acceptance is necessary)
(1) Where a bill is payable after sight, presentment for acceptance is necessary in order to fix the maturity of the instrument.
(2) Where a bill expressly stipulates that it shall be presented for acceptance, or where a bill is drawn payable elsewhere than at the residence or place of business of the drawee, it must be presented for acceptance before it can be presented for payment.
(3) In no other case is presentment for acceptance necessary in order to render liable any party to the bill.
(4) Where the holder of a bill, drawn payable elsewhere than at the place of business or residence of the drawee, has not time, with the exercise of reasonable diligence, to present the bill for acceptance before presenting it for payment on the day it falls due, the delay caused by presenting the bill for acceptance before presenting it for payment is excused, and does not discharge the drawer and endorsers.
Section 40 Bill of Exchange Act 1990
(Time for presenting bill payable after sight)
(1) Subject to the provisions of this Act, when a bill payable after sight is negotiated, the holder must either present it for acceptance or negotiate it within a reasonable time.
(2) If he do not do so, the drawer and all endorsers prior to that holder are discharged.
(3) In determining what is a reasonable time within the meaning of this section, regard shall be had to the nature of the bill, the usage of trade with respect to similar bills, and the facts of the particular case.
Section 41 Bill of Exchange Act 1990
(Rules as to presentment for acceptance and excuses for non-presentment)
(1) A bill is duly presented for acceptance which is presented in accordance with the following rules-
(a) the presentment must be made by or on behalf of the holder to the drawee or to some person authorised to accept or refuse acceptance on his behalf at a reasonable hour on a business day and before the bill is overdue;
(b) where a bill is addressed to two or more drawees who are not partners, presentment must be made to them all, unless one has authority to accept for all, then presentment may be made to him only;
(c) where the drawee is dead, presentment may be made to his personal representative;
(d) where the drawee is bankrupt or insolvent, presentment may be made to him or to his trustee or to the official assignee;
(e) where authorised by agreement or usage, a presentment through the post office is sufficient.
(2) Notwithstanding anything contained in subsection (1) of this section, a bill may be presented for acceptance by means of an advice addressed to the person or persons to whom presentment must under subsection (1) of this section be made, and sent through the post office before the bill is overdue, stating that the bill is held for acceptance by the sender and giving the name of the drawer and particulars of the place at which it is so held, the amount for which and the date on which it was drawn and any usance applicable to the bill. Wherepresentment is made in pursuance of this subsection, the bill shall be deemed to be duly presented for acceptance at the time the advice is posted.
(3) Presentment in accordance with these rules is excused, and a bill may be treated as dishonoured by non-acceptance-
(a) where the drawee is dead, bankrupt or insolvent, or is a fictitious person or a person not having capacity to contract by bill;
(b) where, after the exercise of reasonable diligence, such presentment cannot be effected;
(c) where, although the presentment has been irregular, acceptance has been refused on some other ground.
(4) the fact that the holder has reason to believe that the bill, on presentment, will be dishonoured does not excuse presentment.
Section 42 Bill of Exchange Act 1990
(Non-acceptance)
When a bill is duly presented for acceptance and is not accepted within the customary time, the person presenting it must treat it as dishonoured by non-acceptance. If he does not, the holder shall lose his right of recourse against the drawer and endorsers.
Section 43 Bill of Exchange Act 1990
(Dishonour by non-acceptance and its consequences)
(1) A bill is dishonoured by non-acceptance –
(a) when it is duly presented for acceptance, and such an acceptance as is prescribed by this Act is refused or cannot be obtained; or where an advice is sent through the post office in pursuance of subsection (1) (a) of section 41 of this Act, and acceptance is not obtained within ten days from the time the advice is posted,
(b) when presentment for acceptance is excused and the bill is not accepted.
(2) Subject to the provisions of this Act when a bill is dishonoured by non-acceptance, an immediate right of recourse against the drawer and endorsers accrues to the holder, and no presentment for payment is necessary.
Section 44 Bill of Exchange Act 1990
(Duties as to qualified acceptances)
(1) The holder of a bill may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance, may treat the bill as dishonoured by non-acceptance.
(2) Where a qualified acceptance is taken, and the drawer or an endorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or endorser is discharged from his liability on the bill.
The provisions of this subsection do not apply to a partial acceptance, whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance.
(3) When the drawer or endorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder, he shall be deemed to have assented thereto.
Section 45 Bill of Exchange Act 1990
(Rules as to presentment for payment)
(1) Subject to the provisions of this Act, a bill must be duly presented for payment; and if it be not so presented the drawer and endorsers shall be discharged.
(2) A bill is duly presented for payment if it is presented in accordance with the following rules –
(a) where the bill is not payable on demand, presentment must subject to the provisions of subsection (3) of this section, be made on the day it falls due;
(b) where the bill is payable on demand, then, subject to the provisions of this Act, presentment must be made within a reasonable time after its issue, in order to render the drawer liable, and within a reasonable time after its endorsement, in order to render the endorser liable; and in determining what is a reasonable time, regard shall be had to the nature of the bill, the usage of trade with regard to similar bills, and the facts of the particular case;
(c) presentment must be made by the holder or by some person authorised to receive payment on his behalf at a reasonable hour on a business day, at the proper place as hereinafter defined, either to the person designated by the bill as payer, or to some person authorised to pay or refuse payment on his behalf if with the exercise of reasonable diligence such person can there be found;
(d) a bill is presented at the proper place –
(i) where a place of payment is specified in the bill and the bill is there presented,
(ii) where no place of payment is specified, but the address of the drawee or acceptor is given in the bill, and the bill is there presented,
(iii) where no place of payment is specified and no address given, and the bill is presented at the drawee’s or acceptor’s place of business if known, and if not, at his ordinary residence, if known,
(iv) in any other case, if presented to the drawee or acceptor wherever he can be found, or if presented at his last known place of business or residence;
(e) where a bill is presented at the proper place, and after the exercise of reasonable diligence, no person authorised to pay or refuse payment can be found there, no further presentment to the drawee or acceptor is required;
(f) where a bill is drawn upon, or accepted by two or more persons who are not partners, and no place of payments specified, presentment must be made to them all;
(g) where the drawee or acceptor of a bill is dead, and no place of payment is specified, presentment must be made to a personal representative, if such there be, and with the exercise of reasonable diligence he can be found;
(h) where authorised by agreement or usage, a presentment through the post office is sufficient.
(3) Notwithstanding anything contained in subsection (2) of this section, a bill may, subject to the provisions of this subsection, be presented for payment by means of an advice addressed to the person or persons to whom presentment must under that subsection be made, at the proper place as defined in that subsection, and sent through the post office, stating that the bill is held for payment by the sender and giving the name of the drawer and particulars of the place at which it is so held, the amount for which and the date on which it was drawn and any usance applicable to the bill.
(4) Where presentment is made in pursuance of this subsection, the bill shall be deemed to be duly presented for payment at the time the advice is posted; but a bill shall not be deemed to be duly presented for payment by virtue of an advice sent in pursuance of this subsection unless the advice is posted–
(a) in the case of a bill not payable on demand, not more than ten days and not less than five days before the bill falls due; or
(b) in the case of a bill payable on demand, within such reasonable time as is mentioned in paragraph (b) of subsection (2) of this section.
Section 32, 33, 34, 35, 36, 37, 38 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Negotiation of Bills] of the Act.
Section 32 Bill of Exchange Act 1990
(Requisites of a valid endorsement)
An endorsement in order to operate as a negotiation must comply with the following conditions-
(a) It must be written on the bill itself and be signed by the endorser and the simple signature of the endorser on the bill, without any additional words, is sufficient;
(b) An endorsement written on an allonge,or on a “copy” of a bill issued or negotiated in a country where “copies” are recognized is deemed to be written on the bill itself;
(c) It must be an endorsement of the entire bill, that is to say, 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 does not operate as a negotiation of the bill;
(d) where a bill is payable to the order of two or more payees or endorsees who are not partners, all must endorse, unless the one endorsing has authority to endorse for the others;
(e) where, in a bill payable to order, the payee or endorsee is wrongly designated or his name is misspelt, he may endorse the bill as therein described. adding, if he think fit, his proper signature;
(f) 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;
(g) an endorsement may be made in blank or special. It may also contain terms making it restrictive.
Section 33 Bill of Exchange Act 1990
(Conditional endorsement)
Where a bill purports to be endorsed conditionally the condition may be disregarded by the payer, and payment to the endorsee is valid whether the condition has been fulfilled or not.
Section 34 Bill of Exchange Act 1990
(Endorsement in blank and special endorsement)
(1) An endorsement in blank specifies no endorsee, and a bill so endorsed becomes payable to bearer.
(2) A special endorsement specifies the person to whom, or to whose order, the bill is to be payable.
(3) The provisions of this Act relating to a payee apply with the necessary modifications to an endorsee under a special endorsement.
(4) When a bill has been endorsed in blank, any holder may convert the blank endorsement 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.
Section 35 Bill of Exchange Act 1990
(Restrictive endorsement)
(1) An endorsement is restrictive which prohibits the further negotiation of the bill or which expresses that it is a mere authority to deal with the bill as thereby directed and not a transfer of the ownership thereof, as for example, if a bill be endorsed “Pay D. only”, or “Pay D. for the account of X”, or “Pay D. or order for collection”.
(2) A restrictive endorsement gives the endorsee the right to receive payment of the bill and to sue any party thereto that his endorser could have sued, but gives him no power to transfer his rights as endorsee unless it expressly authorises him to do so.
(3) Where a restrictive endorsement authorises further transfer, all subsequent endorsees take the bill with the same rights and subject to the same liabilities as the first endorsee under the restrictive endorsement.
Section 36 Bill of Exchange Act 1990
(Negotiation of overdue or dishonoured bill)
(1) Where a bill is negotiable in its origin it continues Negotiation of overdue to be negotiable until it has been –
(a) restrictively endorsed; or
(b) discharged by payment or otherwise.
(2) Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had.
(3) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section, when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact.
(4) Except where an endorsement bears date after the maturity of the bill, every negotiation is prima facie deemed to have been effected before the bill was overdue.
(5) Where a bill which is not overdue has been dishonoured any person who takes it with notice of the dishonour takes it subject to any defect of title attaching thereto at the time of dishonour, but nothing in this subsection shall affect the rights of a holder in due course.
Section 37 Bill of Exchange Act 1990
(Negotiation of bill to party already liable thereon)
Where a bill is negotiated back to the drawer, or to a Negotiation of bill to prior endorser or to the acceptor, such party may, subject to party the provisions of the Act, re-issue and further negotiate the already liable bill, but he is not entitled to enforce payment of the bill against any intervening party to whom he was previously liable.
Section 38 Bill of Exchange Act 1990
(Rights of the holder)
The rights and powers of the holder of a bill are as follows-
(a) he may sue on the bill in his own name;
(b) where he is a holder in due course, he holds the bill flee 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;
(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.
Section 27,28,29,30,31 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – The Consideration for a Bill] of the Act, among other sections.
Section 27 Bill of Exchange Act 1990
(Value and holder for value)
(1) Valuable consideration for a bill may be constituted by-
(a) any consideration sufficient to support a simple contract;
(b) an antecedent debt or liability and such a debt or liability is deemed valuable consideration whether the bill is payable on demand or at a future time.
(2) Where value has at any time been given for a bill the holder is deemed to be a holder for value as regards the acceptor and all parties to the bill who became parties prior to such time.
(3) Where the holder of a bill has a lien on it arising either from contract or by implication of law, he is deemed to be a holder for value to the extent of the sum for which he has a lien.
Section 28 Bill of Exchange Act 1990
(Accommodation bill or party)
(1) An accommodation party to a bill is a person who has signed a bill as drawer, acceptor or endorser, without receiving value therefor, and for the purpose of lending his name to some other person.
(2) An accommodation party is liable on the bill to a holder for value; and it is immaterial whether, when such holder took the bill, he knew such party to be an accommodation party or not.
Section 29 Bill of Exchange Act 1990
(Accommodation bill or party)
(1) 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:–
(a) that he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact; or
(b) that he took the bill in good faith and for value, and 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.
(2) In particular, the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.
(3) A holder (whether for value or not), who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor, and all parties to the bill prior to that holder.
Section 30 Bill of Exchange Act 1990
(Presumption of value and good faith)
(1) Every party whose signature appears on a bill is prima facie deemed to have become a party thereto for value.
(2) Every holder of a bill is prima facie deemed to be a holder in due course; but if in an action on a bill it is admitted or proved that the acceptance, issue or subsequent negotiation of the bill is affected with fraud, duress or force and fear, or illegality, the burden of proof is shifted unless and until the holder proves that, subsequent to the alleged fraud or illegality, value has in good faith been given for the bill.
Section 31 Bill of Exchange Act 1990
(Negotiation of bill)
(1) A bill is negotiated when it is transferred from Negotiation one person to another in such a manner as to constitute the of bill. transferee the holder of the bill.
(2) A bill payable to bearer is negotiated by delivery.
(3) A bill payable to order is negotiated by the endorsement of the holder completed by delivery.
(4) Where the holder of a bill payable to his order transfers it for value without endorsing it, the transfer gives the transferee such title as the transferor had in the bill, and the transferee in addition acquires the right to have the endorsement of the transferor.
(5) Where any person is under obligation to endorse a bill in a representative capacity, he may endorse the bill in such terms as to negative personal liability.
Section 22,23,24,25,26 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Capacity and Authority of Parties] of the Act.
Section 22 Bill of Exchange Act 1990
(Capacity of parties)
(1) Capacity to incur liability as a party to a bill is co-extensive with capacity to contract:
Provided that nothing in this section shall enable a corporation to make itself liable as drawer, acceptor or endorser of a bill unless it is competent to it so to do under the law for the time being in force relating to corporations.
(2) Where a bill is drawn or endorsed by an infant, minor or corporation having no capacity or power to incur liability on a bill, the drawing or endorsement entitles the holder to receive payment of the bill, and to enforce it against any other party thereto.
Section 23 Bill of Exchange Act 1990
(Signature essential to liability)
No person is liable as drawer, endorser or acceptor of a bill who has not signed it as such:
Provided that-
(a) 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;
(b) the signature of the name of a firm is equivalent to the signature by the person so signing of the names of all persons liable as partners in that firm.
Section 24 Bill of Exchange Act 1990
(Forged or unauthorised signature)
Subject to the provisions of this Act, where a signature on a bill is forged or placed thereon without the authority of the person whose signature it purports to be, the forged or unauthorised signature is wholly inoperative, and 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 that signature, unless the party against whom it is sought to retain or enforce payment of the bill is precluded from setting up the forgery or want of authority:
Provided that nothing in this section shall affect the ratification of an authorised signature not amounting to a forgery.
Section 25 Bill of Exchange Act 1990
(Procuration signatures)
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.
Section 26 Bill of Exchange Act 1990
(Person signing as agent or in representative capacity)
(1) 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 agent, or as filling a representative character, does not exempt him from personal liability.
(2) 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.
Section 17,18,19,20,21 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Form and Interpretation] of the Act, together with other sections.
Section 17 Bill of Exchange Act 1990
(Definition and requisites of acceptance)
(1) The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer.
(2) An acceptance is invalid unless it complies with the following conditions-
(a) it must be written on the bill and be signed by the drawee; and the mere signature of the drawee without additional words is sufficient;
(b) it must not express that the drawee will perform his promise by any other means than the payment of money.
Section 18 Bill of Exchange Act 1990
(Time for acceptance)
(1) A bill may be accepted–
(a) before it has been signed by the drawer or while otherwise incomplete;
(b) when it is overdue or after it has been dishonoured by a previous refusal to accept or by non-payment.
(2) When a bill payable after sight is dishonoured by nonacceptance and the drawee subsequently accepts it, the holder in the absence of any different agreement is entitled to have the bill accepted as of the date of first presentment to the drawee for acceptance.
Section 19 Bill of Exchange Act 1990
(General and qualified acceptance)
(1) An acceptance is either-
(a) general; or
(b) qualified.
(2) A general acceptance assents without qualification to the order of the drawer; and a qualified acceptance in express terms varies the effect of the bill as drawn.
(3) In particular an acceptance is qualified which is
(a) conditional that is to say, which makes payment by the acceptor dependent on the fulfillment of a condition therein stated;
(b) partial that is to say an acceptance to pay part only of the amount for which the bill is drawn
(c) local that is to say an acceptance to pay part only at a particular specified place; and an acceptance only at a particular specified place and an acceptance to pay at a particular place is a general acceptance unless it expressly states that the bill is to be paid there only and not elsewhere;
(d) qualified as to time;
(e) the acceptance of some one or more of the drawees, but not of all.
Section 20 Bill of Exchange Act 1990
(Inchoate instruments)
(1) Where a simple signature on a blank stamped paper is delivered by the signer in order that it may be converted into a bill, it operates as a prima facie authority to fill it up as a complete bill for any amount the stamp will cover, using the signature for that of the drawer, or the acceptor, or an endorser; and, in like manner, when a bill is wanting in any material particular, the person in possession of it has a prima facie authority to fill up the omission in any way he thinks fit.
(2) In order that any such instrument when completed may be enforceable against any person who became a party thereto prior to its completion, it must be filled up within a reasonable time, and strictly in accordance with the authority given; and reasonable time for this purpose is a question of fact:
Section 21 Bill of Exchange Act 1990
(Delivery)
(1) Every contract on a bill, whether it be the drawer’s, the acceptors, or an endorser’s, is incomplete and revocable, until delivery of the instrument in order to give effect thereto:
Provided that where an acceptance is written on a bill, and the drawee gives notice to or according to the directions of the person entitled to the bill that he has accepted it, the acceptance then becomes complete and irrevocable.
(2) As between immediate parties, and as regards a remote party other than a holder in due course, the delivery –
(a) In order to be effectual must be made either by or under the authority of the party drawing, accepting or endorsing, as the case may be;
(b) may be shown to have been conditional or for a special purpose only, and not for the purpose of transferring the property in the bill.
But if the bill be in the hands of a holder in due course a valid delivery of the bill by all parties prior to him so as to make them liable to him is conclusively presumed.
(3) Where a bill is no longer in the possession of a party who has signed it as drawer, acceptor or endorser, a valid and unconditional delivery by him is presumed until the contrary is proved.
Section 11,12,13,14,15,16 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Form and Interpretation] of the Act, among other sections.
Section 11 Bill of Exchange Act 1990
(Bill payable at a future time)
(1) A bill is payable at a determinable future time within the meaning of this Act which is expressed to be payable–
(a) at a fixed period after date or sight;
(b) on or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain.
(2) An instrument expressed to be payable on a contingency is not a bill, and the happening of the event does not cure the defect.
Section 12 Bill of Exchange Act 1990
(Omission of date in bill payable after date)
Where a bill expressed to be payable at a fixed period after date is issued undated or where the acceptance of a bill payable at a fixed period after sight is undated any holder may insert therein a true date of issue or acceptance and the bill shall be payable accordingly:
Provided that –
(a) where the holder in good faith and by mistake inserts a wrong date; and
(b) in every case where a wrong date is inserted if the bill subsequently comes into the hands of a holder in due course, the bill shall not be avoided thereby but shall operate and be payable as if the date so inserted had been the true date.
Section 13 Bill of Exchange Act 1990
(Ante-dating and post-dating)
(1) Where a bill or an acceptance or any endorsement on a bill is dated the date shall unless the contrary be proved be deemed to be the true date of the drawing, acceptance or endorsement as the case may be.
(2) A bill is not invalid by reason only that it is ante-dated or post-dated or that it bears date on a Sunday.
Section 14 Bill of Exchange Act 1990
(Computation of time of payment)
Where a bill is not payable on demand, the day on which it fails due is determined as follows –
(a) three days called days of grace are, in every case where the bill itself does not otherwise provide, added to the time of payment as fixed by the bill and the bill is due and payable on the last day of grace:
Provided that –
(i) when the last day of grace falls on Sunday, Christmas Day or Good Friday, the bill is, except in the case hereinafter provided for, due and payable on the preceding business day,
(ii) when the last day of grace is a public holiday (other than Christmas Day or Good Friday), or when the last day of grace is a Sunday and the second day of grace is a public holiday, the bill is due and payable on the succeeding business day,
(b) where a bill is payable at a fixed period after date, after sight, or after the happening of a specified event the time of payment is determined by excluding the day from which the time is to begin to run and by including the day of payment;
(c) where a bill is payable at a fixed period after sight the time begins to run from the date of the acceptance if the bill be accepted and from the date of noting or protest if the bill be noted or protested for non-acceptance or for non-delivery;
(d) the term “month” in a bill means calendar month.
Section 15 Bill of Exchange Act 1990
(Case of need)
(1) The drawer of a bill and any endorser may insert Case of therein the name of a person to whom the holder may resort in case of need, that is to say, in case the bill is dishonoured by non-acceptance or non-payment and such person is called the referee in case of need..
(2) It is in the option of the holder to resort to the referee in case of need or not as he may think fit.
Section 16 Bill of Exchange Act 1990
(Optional stipulations by drawer or endorser)
The drawer of a bill and any endorser may insert therein an express stipulation-
(a) negativing or limiting his own liability to the holder;
(b) waiving as regards himself some or all of the holder’s duties.
Credit: CommonLII
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