Question

What is meant by dishonour of a bill of exchange?

Answer 1

Answer:

Its helpful for u. i guess

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Answer 2

Dishonour of a bill of exchange is said to be done in two ways:

1) either by non-payment

2) or by non-acceptance

If the drawee doesn’t accept the bill or after acceptance, doesn’t pay the bill, then he is dishonouring the bill of exchange.

Bill of exchange is a negotiable instrument which needs to be paid once it reaches its date of maturity but if the payment of the bill is refused then that will be its dishonouring.

The bill needs to be paid on or before the date of maturity.