91. Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance
when the drawee, or one of several drawees not being partners, makes default in acceptance upon being
duly required to accept the bill, or where presentment is excused and the bill is not accepted.
Where the drawee is incompetent to contract, or the acceptance is qualified the bill may be treated as
dishonoured.
92. Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be
dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque
makes default in payment upon being duly required to pay the same.
93. By and to whom notice should be given.—When a promissory note, bill of exchange or cheque
is dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto who remains
1. Section 89 re-numbered as sub-section (1) thereof by Act 55 of 2002, s. 5 (w.e.f. 6-2-2003).
2. Ins. by, s. 5, ibid, (w.e.f. 6-2-2003).
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liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the
holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make
jointly liable thereon.
Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory
note or the drawee or acceptor of the dishonoured bill of exchange or cheque.
94. Mode in which notice may be given.—Notice of dishonour may be given to a duly authorized agent
of the person to whom it is required to be given, or, where he has died, to his legal representative, or, where he
has been declared an insolvent, to his assignee; may be oral or written; may, if written, be sent by post; and
may be in any form; but it must inform the party to whom it is given, either in express terms or by reasonable
intendment, that the instrument has been dishonoured, and in what way, and that he will be held liable thereon;
and it must be given within a reasonable time after dishonour, at the place of business or (in case such party
has no place of business) at the residence of the party for whom it is intended.
If the notice is duly directed and sent by post and miscarries, such miscarriage does not render the
notice invalid.
95. Party receiving must transmit notice of dishonour.—Any party receiving notice of dishonour
must, in order to render any prior party liable to himself, give notice of dishonour to such party within a
reasonable time, unless such party otherwise receives due notice as provided by section 93.
96. Agent for presentment.—When the instrument is deposited with an agent for presentment, the
agent is entitled to the same time to give notice to his principal as if he were the holder giving notice of
dishonour, and the principal is entitled to a further like period to give notice of dishonour.
97. When party to whom notice given is dead.—when the party to whom notice of dishonour is
dispatched is dead, but the party dispatching the notice is ignorant of his death, the notice is sufficient.
98. When notice of dishonour is unnecessary.—No notice of dishonour is necessary—
(a) when it is dispensed with by the party entitled thereto;
(b) in order to charge the drawer, when he has countermanded payment;
(c)when the party charged could not suffer damage for want of notice;
(d) when the party entitled to notice cannot after due search be found; or the party bound to give
notice is, for any other reason, unable without any fault of his own to give it;
(e) to charge the drawers, when the acceptor is also a drawer;
(f) in the case of a promissory note which is not negotiable;
(g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the
amount due on the instrument.