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KembaraXtra – Legal Terms – Notice of Dishonour
A notice of dishonour is a formal notification given when a *bill of exchange has been dishonoured, either because it was not accepted or not paid.
The holder of the bill must give notice to the drawer and every endorser; otherwise, those parties may be discharged from liability.
The notice must clearly identify the bill and state the reason for dishonour, whether by non-acceptance or non-payment.
It must also be given within a reasonable time, according to strict legal rules, although certain recognized excuses may justify delay or failure to provide notice.
A notice of dishonour is a formal notification given when a *bill of exchange has been dishonoured, either because it was not accepted or not paid.
The holder of the bill must give notice to the drawer and every endorser; otherwise, those parties may be discharged from liability.
The notice must clearly identify the bill and state the reason for dishonour, whether by non-acceptance or non-payment.
It must also be given within a reasonable time, according to strict legal rules, although certain recognized excuses may justify delay or failure to provide notice.
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