Acceptance for honour – If a bill has been dishonoured by non-acceptance and has been duly noted or protested for such dishonour, any person, before it is overdue, who is not a partly already liable under the bill may, with the consent of the holder of the bill, by writing on the bill, accept the bill for the honour of any of the parties liable on it. The object of such an acceptance for honour is to protect the credit of the party liable on the bill, and to prevent legal proceeding being taken against him.
Conditions for valid acceptance for honour: These are: (i) that the bill has been noted or protested for non-acceptance or better security: (ii) that such an acceptance has been made with the consent of the holder, (iii) that the acceptor for honour is not already liable on the bill, (iv) that the acceptance is for the honour of any party already liable on the bill; and (v) that the acceptance is by writing on the bill.
Rights and Liabilities of such acceptor: Section 111 of the Act states that an acceptor for honour binds h himself all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee does not. But an acceptor for honour is not liable to the holder of the bill unless it is presented or (in case the address given by such acceptor on the bill is a place other then the place where the bill is made payable) forwarded for presentment not later than the ‘day next after the day of its maturity. Moreover, an acceptor for honour cannot be charged unless the bill has been presented at its maturity to the drawee for payment and has been dishonoured by him and noted or protested for such dishonour (Section 112),
Section 111 further provides that the party for whose honour the acceptor accepts to pay and
all prior parties become liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him, in consequence of sad acceptance:
Conditions for valid acceptance for honour: These are: (i) that the bill has been noted or protested for non-acceptance or better security: (ii) that such an acceptance has been made with the consent of the holder, (iii) that the acceptor for honour is not already liable on the bill, (iv) that the acceptance is for the honour of any party already liable on the bill; and (v) that the acceptance is by writing on the bill.
Rights and Liabilities of such acceptor: Section 111 of the Act states that an acceptor for honour binds h himself all parties subsequent to the party for whose honour he accepts to pay the amount of the bill if the drawee does not. But an acceptor for honour is not liable to the holder of the bill unless it is presented or (in case the address given by such acceptor on the bill is a place other then the place where the bill is made payable) forwarded for presentment not later than the ‘day next after the day of its maturity. Moreover, an acceptor for honour cannot be charged unless the bill has been presented at its maturity to the drawee for payment and has been dishonoured by him and noted or protested for such dishonour (Section 112),
Section 111 further provides that the party for whose honour the acceptor accepts to pay and
all prior parties become liable in their respective capacities to compensate the acceptor for honour for all loss or damage sustained by him, in consequence of sad acceptance:
Conditions of Acceptance for Honour of Bills
![Conditions of Acceptance for Honour of Bills]()
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