Discuss six rules governing presentment for payment of a bill of exchange
Rules governing presentment of bill of exchange
- A bill must be presented for payment in order to make the drawer and endorsees liable on it. Presentment is made by exhibiting the bill to the person from whom the holder demands payment and when the bill is duly paid the holder must deliver it up to the party paying it.
- When the bill is not payable on demand, presentment must be made on the day it falls due.
- When the bill is payable on demand, presentment for payment must be made within a reasonable time after its issue in order to render the drawer liable.