Notice of dishonour must be given by a holder to the persons whom he seeks to make liable on the instrument. But notice of dishonor is not necessary (Section 98) in the following cases:

1. When it is dispensed with by the party entitled thereto.

2. In order to charge the drawer, when he has countermanded payment;

3. When the party charged could not suffer damage for want of notice;

ADVERTISEMENTS:

4. When the party entitled to notice cannot after due search be found or where the party bound to give notice cannot give, through no fault of his own;

5. Where the drawer and acceptor is the same person;

6. In the case of a promissory note which is not negotiable;

7. When the party entitled to notice, knowing the facts, unconditionally agrees to pay the amount.

ADVERTISEMENTS:

8. When the omission to give notice is caused by unavoidable circumstances i.e. for reasons beyond the control of the holder of the instrument. Illness or death of the holder is reason excusable to give notice.