Instruments payable on demand/ At sight:
- Bills and notes are payable either on demand or at a fixed future time.
- Cheques are always payable on demand.
- A promissory note or bill of exchange in which no time for payment is mentioned is payable on demand.
- A bill or promissory note is also payable on demand when it is expressed to be payable on demand, or “at sight” or “presentment”.
It should be noted that the expression “on demand” does not imply that any actual demand is to be made; it is only a technical expression meaning “immediately payable”. Such a bill or note may be presented for payment at any time at the option of holder, but it must be presented within a reasonable time after its issue in order to tender the drawer liable, and within a reasonable time after its endorsement to render the endorser liable.
(ii) Time Bills: The expression “after sight” means, a promissory note after presentment for sight, and in a bill of exchange, after acceptance, noting for non-acceptance or protest for non – acceptance. It is useful to make a bill or not payable at so many months or days after sight.
The term ‘after sight’ is differently used in a note and a bill. In the former case, it denotes that payment is not to be demanded till it has been exhibited to the maker, for a note is incapable of being accepted; while in the latter case, it denotes that sight must appears in legal way , i.e., after acceptance, if the bill has been accepted or a after noting for non-acceptance or protest for non-acceptance soon).
(iii) Maturity. Where bill or note is payable at fixed period after sight, the question of maturity becomes important. The maturity of a note or bill is the date on which it falls due. A note or bill, not payable on demand, at sight or on presentment; is at maturity on the third day after the day on which it is expressed to be payable. Three days are
allowed as days of grace. No days of grace are allowed in the case of a note or bill payable on demand, at sight on presentment.
(ii) Time Bills: The expression “after sight” means, a promissory note after presentment for sight, and in a bill of exchange, after acceptance, noting for non-acceptance or protest for non – acceptance. It is useful to make a bill or not payable at so many months or days after sight.
The term ‘after sight’ is differently used in a note and a bill. In the former case, it denotes that payment is not to be demanded till it has been exhibited to the maker, for a note is incapable of being accepted; while in the latter case, it denotes that sight must appears in legal way , i.e., after acceptance, if the bill has been accepted or a after noting for non-acceptance or protest for non-acceptance soon).
(iii) Maturity. Where bill or note is payable at fixed period after sight, the question of maturity becomes important. The maturity of a note or bill is the date on which it falls due. A note or bill, not payable on demand, at sight or on presentment; is at maturity on the third day after the day on which it is expressed to be payable. Three days are
allowed as days of grace. No days of grace are allowed in the case of a note or bill payable on demand, at sight on presentment.
What are Sight And Time Bills?
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