A bill of exchange can be dishonored by non-acceptance (Section 91) in the following ways

ADVERTISEMENTS:

A bill of exchange can be dishonored by non-acceptance (Section 91) in the following ways:

1. If a bill is presented to the drawee for acceptance and he does not accept it within 48 hours from the time of presentment for acceptance.

2. When the drawee is a fictitious person or if he cannot be traced after reasonable search.

ADVERTISEMENTS:

3. When the drawee is incompetent to contract.

4. When a bill is accepted with a qualified acceptance.

5. When the drawee has either become insolvent or is dead.

6. When presentment for acceptance is excused and the bill is not accepted.

ADVERTISEMENTS:

7. When one or some of several drawees, not being partners make default in acceptance on being duly required doing so.

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