8/18/2019 Law Type 15-16

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96. When will notice of dishonour may be dispensed with?

A. It may be dispensed with if after the exercise of reasonable diligence, notice

of dishonour cannot be given or does not reach the parties sought to be

charged. !ec.""#$

9%. When is the notice of dishonour need not be given anymore to the &rawer?

A. In any of the following cases '". Where the drawer and drawee are the same person(#. When the drawee is a )ctitious person or a person not having capacity to

contract(*. When the drawer is the person to whom the instrument is presented for

payment(+. Where the drawer has no right to expect or reuire that the drawee or

acceptor will honor the instrument(-. Where the drawer has countermanded payment. !ec.""+$

9. When is notice of dishonour need not be given anymore to the Indorser?

A. In any of the following cases'". When the drawee is a )ctitious person or a person not having capacity to

contract, and the indorser was aware of the fact at the time he indorsed

the instrument(#. Where the indorser is the person to whom the instrument is presented for

payment(*. Where the instrument was made or accepted for his accommodation.

99. Is notice of dishonour thru non/payment still necessary if there is already a prior

notice of dishonour thru non/acceptance?

A. It is no longer needed unless in the meantime the instrument has been

accepted !ec.""6$.