Acceptance for Honor in Negotiable Instruments

Document Type : Original Article

Authors

1 Human Sciences Faculty. University of Gonbad Qavous, Gonbas Qavous, Iran.

2 Law Department, University of Arak, Arak, Iran.

Abstract

If bill of exchange or cheque was not accepted by the drawee, holder of that bills could resource to other liable parties or that want to take a guarantee before maturity. Acceptance by the third party is a method to avoid holder’s resource to issuer and endorser before maturity. This action can be done partially or wholly. This acceptance can be done after having done a protest for non-acceptance. Considering the legal nature of acceptance for honor based on the doctrine of offer faces with this important issue that it cannnot cover all types of this act. The Benevolent intervention in another doctrine that is a far argument and thus cannot cover all types of the act. The same problem exists on the agency doctrine. Instead of these doctrines, unilateral obligation doctrine ignores one of the involved willingness's in creating that act. Based on guaranty contract doctrine not only we cannot open any door but also it creates new problem. Moreover, this doctrine is contradiction with interpretation of parties' willingness. It is, therefore a special legal action that involves bill of exchange obligation and arises rights and responsibilities.

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References

3-English
  3-1-Book
-     Bussel, J.A., Maclachlan, D, Chitty on Bills of Exchange, Promissory Notes, Cheques on Bankers, Bankers Cash Note and Bank Notes; with references to the Law of Scotland, France and Amerika, 10 edition, London, 1859.
-     De Leon, H.S, United Nations Convention on International Bills of Exchange and International Promissory Notes, New York: Published & distributed by Rex Book Store, 1988.
-     Story, J, Commentaries on the Law of Bills of Exchange: Foreign and Inland, as Administered in England and America, with Occasional Illustrations from the Commercial Law of the Nations of Continental Europe, New Jersey: The Law book Exchange LTD, 2005.
 
 3-2-Article
-     Itriago,S.(1945)"Acceptance by Intervention in Bills of Exchange",Michigan Law Review, Vol. 43, No. 5(939-969).
 
 
Legal Research Quarterly
Volume 23, Issue 90 - Serial Number 90
September 2020
Pages 235-261

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History

  • Receive Date: 28 April 2018
  • Revise Date: 15 June 2019
  • Accept Date: 12 February 2020

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