(a) Liability of legal representatives (Section 29): A ‘legal representative’ of a deceased person, who signs his own name on an instrument, is personally liable for the entire amount; but he may expressly limit his liability to the extent of the assets received by him as legal representative. The term “legal representative” includes heirs, executors and administrators.
(b) Liability of drawer (Section 30): The drawer of a bill of exchange or cheque is bound, in the case of dishonour by the drawer or acceptor thereof to compensate the however. Provided due notice of dishonour has been given to, or received by him provided in Section 93 to 98 of the Act.
(c) Liability of drawee of cheque (Section 31) The drawee of the cheque is always a banker. It is the duty of the banker to pay the cheque, provided he has in his hands sufficient found of the drawer and the founds are properly applicable to such payment. Trust money is not properly applicable to the payment of a cheque drawn in breach of trust. If the banker refuses payment without sufficient case being shown, he must compensate the drawer for any loss caused by such improper refusal. The bank is required to compensate, not the holder, but the drawer. The amount of compensation, that the drawee would have to pay to the drawer is to be measured by the loss or damage say loss of credit, suffered by the drawer).
(e) Liability of endorser (Section 35): The endorser of an instrument by endorshing and delivering the instrument, before maturity, undertakes in effect the responsibility that on the due presentment it shall be accepted, (if a bill), and paid and that if it is dishonoured by the drawee, acceptor or maker, he will indemnify the holder or subsequent endorser who is compelled to pay, provided due notice of dishonour is received by him. But he may insert, in the endorsement, stipulations excluding, or making his liability conditional ; In this respect, his position is better than that a drawer or an acceptor, neither of whom can exclude his liability. An acceptor, however can make his acceptance conditional.
(f) Liability of parties to holder in due course (Section 36 ) : Every prior party ( ie. , maker or drawer, acceptor and all intervening endorsers to an instrument is liable to a holder in due course until the instrument is satisfied. Thus the maker and endorsers of a note are jointly and severally liable for the payment and may be sued jointly.
(g) Liability of maker, drawer and acceptor as principals (Section 37 & 38): The maker of a promissory note is liable as the principal debtor. If the payee endorses it to A, the
(b) Liability of drawer (Section 30): The drawer of a bill of exchange or cheque is bound, in the case of dishonour by the drawer or acceptor thereof to compensate the however. Provided due notice of dishonour has been given to, or received by him provided in Section 93 to 98 of the Act.
(c) Liability of drawee of cheque (Section 31) The drawee of the cheque is always a banker. It is the duty of the banker to pay the cheque, provided he has in his hands sufficient found of the drawer and the founds are properly applicable to such payment. Trust money is not properly applicable to the payment of a cheque drawn in breach of trust. If the banker refuses payment without sufficient case being shown, he must compensate the drawer for any loss caused by such improper refusal. The bank is required to compensate, not the holder, but the drawer. The amount of compensation, that the drawee would have to pay to the drawer is to be measured by the loss or damage say loss of credit, suffered by the drawer).
(e) Liability of endorser (Section 35): The endorser of an instrument by endorshing and delivering the instrument, before maturity, undertakes in effect the responsibility that on the due presentment it shall be accepted, (if a bill), and paid and that if it is dishonoured by the drawee, acceptor or maker, he will indemnify the holder or subsequent endorser who is compelled to pay, provided due notice of dishonour is received by him. But he may insert, in the endorsement, stipulations excluding, or making his liability conditional ; In this respect, his position is better than that a drawer or an acceptor, neither of whom can exclude his liability. An acceptor, however can make his acceptance conditional.
(f) Liability of parties to holder in due course (Section 36 ) : Every prior party ( ie. , maker or drawer, acceptor and all intervening endorsers to an instrument is liable to a holder in due course until the instrument is satisfied. Thus the maker and endorsers of a note are jointly and severally liable for the payment and may be sued jointly.
(g) Liability of maker, drawer and acceptor as principals (Section 37 & 38): The maker of a promissory note is liable as the principal debtor. If the payee endorses it to A, the
Liabilities of Parties to Negotiable Instruments
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