Section 85-91 Bill of Exchange Act LFN 1990

Section 85-91 Bill of Exchange Act 1990

Section 85, 86, 87, 88, 89 of the Bill of Exchange Act [Laws of the Federation of Nigeria 1990] is under Part IV [Promissory Notes] of the Act.

Section 85 Bill of Exchange Act 1990

(Promissory note defined)

 (1)            A promissory note is an unconditional promise in writing, made by one person to another, signed by the maker, engaging 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 in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is endorsed by the maker.

(3)            A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.

(4)            A note which is, or on the face of it purports to be, both made and payable within Nigeria is an inland note. Any other note is a foreign note.

Section 86 Bill of Exchange Act 1990

(Delivery necessary)

A promissory note is inchoate and incomplete until delivery thereof to the payee or bearer.

Section 87 Bill of Exchange Act 1990

(Joint and several notes)

SEE ALSO  Section 46-52 Bill of Exchange Act LFN 1990

(1)            A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally, according to its tenor.

(2)            Where a note runs “I promise to pay” and is signed by two or more persons it is deemed to be their joint and several note.

Section 88 Bill of Exchange Act 1990

(Note payable on demand)

(1)            Where a note payable on demand has been endorsed, it must be presented for payment within a reasonable time of the endorsement. If it be not so presented the endorser is discharged.

(2)            In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case.

(3)            Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

Section 89 Bill of Exchange Act 1990

(Presentment of note for payment)

 (1)            Where a promissory note is in the body of it made Presentment of note payable at a particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable.

(2)            Presentment for payment is necessary in order to render the endorser of a note liable.

(3)            Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an endorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the endorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.

SEE ALSO  Section 27-31 Bill of Exchange Act LFN 1990

Section 90 Bill of Exchange Act 1990

(Liability of maker)

 The maker of a promissory note by making it-

(a)            engages that he will pay it according to its tenor;

(b)            is precluded from denying to a holder in due course the existence of the payee and his then capacity to endorse.

(2)            Where a note runs “I promise to pay” and is signed by two or more persons it is deemed to be their joint and several note.

Section 91 Bill of Exchange Act 1990

(Application of Part II to notes)

 (1)            Subject to the provisions in this Part of this Act, and except as by this section provided, the provisions of this Act relating to bills of exchange apply, with the necessary modifications, to promissory notes.

(2)            In applying those provisions the maker of a note shall be deemed to correspond with the acceptor of a bill, and the first endorser of a note shall be deemed to correspond with the drawer of an accepted bill payable to drawer’s order.

(3)            The following provisions as to bills do not apply to notes; namely, provisions relating to-

(a)            presentment for acceptance;

(b)            acceptance;

(c)            acceptance supra protest;

(d)            bills in a set.

(4)            Where a foreign note is dishonoured, protest thereof is unnecessary.

Published by

Inioluwa Olaposi

Hi, there. I'm Inioluwa, founder of LawHub NG. I study Law at Obafemi Awolowo University, Nigeria. And I am interested in entrepreneurship and human development. Contact me at Inioluwa@lawhub.com.ng.

Leave a Reply

Your email address will not be published.