Section 3-10 Bill of Exchange Act 1990
Section 3,4,5,6,7,8,9,10 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part II [Bills of Exchange – Form and Interpretation] of the Act, among other sections.
Section 3 Bill of Exchange Act 1990
(Bill of exchange defined)
(1) A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it s addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.
(2) An instrument which does not comply with these conditions, or which orders any act to be done in addition to the payment of money, is not a bill of exchange.
(3) An order to pay out of a particular fund is not unconditional within the meaning of this section; but an unqualified order to pay, coupled with-
Section 4 Bill of Exchange Act 1990
(Inland and foreign bills)
(1) An inland bill is a bill which is or on the face of it purports to be-
(a) both drawn and payable within Nigeria; or
(b) drawn within Nigeria upon some person resident therein.
Any other bill is a foreign bill.
(2) Unless the contrary appear on the face of the bill the holder may treat it as an inland bill.
Section 5 Bill of Exchange Act 1990
(Effect where different parties to a bill are the same person)
(1) A bill may be drawn payable to, or to the order of, the drawer; or it may be drawn payable to, or to the order of, the drawee.
(2) Where in a bill the drawer and the drawee are the same person, or where the drawee is a fictitious person or a person not having capacity to contract, the holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.
Section 6 Bill of Exchange Act 1990
(Address to drawee)
(1) The drawee must be named or otherwise indicated in a bill with reasonable certainty.
(2) A bill may be addressed to two or more drawees whether they are partners or not, but an order addressed to two drawees in the alternative or to two or more drawees in succession is not a bill of exchange.
Section 7 Bill of Exchange Act 1990
(Certainty required as to payee)
(1) Where a bill is not payable to bearer the payee must be named or otherwise indicated therein with reasonable certainty.
(2) A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees; and may also be made payable to the holder of an office for the time being.
(3) Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer.
Section 8 Bill of Exchange Act 1990
(What bills are negotiable)
(1) When a bill contains words prohibiting transfer or indicating an intention that it should not be transferable it is valid as between the parties thereto but is not negotiable.
(2) A negotiable bill may be payable either to order or to bearer.
(3) A bill is payable to bearer which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank.
(4) A bill payable to order which is expressed to be so payable or which is expressed to be payable to a particular person and does not contain words prohibiting transfer or indicating an intention that it should not be transferable.
(5) Where a bill either originally or by endorsement is expressed to be payable to the order of a specified person and not to him or his order, it is nevertheless payable to him or his order at his option.
Section 9 Bill of Exchange Act 1990
(1) The sum payable by a bill is a sum certain within the meaning of this Act, although it is required to be paid-
(a) with interest;
(b) by stated instalments;
(c) by stated instalments, with a provision, that upon default in payment of any instalment the whole shall become due;
(d) according to an indicated rate of exchange or according to a rate of exchange to be ascertained as directed by the bill.
(2) Where the sum payable is expressed in words and also in figures and there is a discrepancy between the two, the sum denoted by the words is the amount payable.
(3) Where a bill is expressed to be payable with interest, unless the instrument otherwise provides, interest runs from the date of the bill, and if the bill is undated from the issue thereof.
Section 10 Bill of Exchange Act 1990
(Bill payable on demand)
(1) A bill is payable on demand–
(a) which is expressed to be payable on demand or at sight or on presentation; or
(b) in which no time for payment is expressed.
(2) Where a bill is accepted or endorsed when it is overdue, it shall, as regards the acceptor who so accepts or any endorser who so endorses it, be deemed a bill payable on demand.