No, where a bill is conditional it cannot be regarded as a valid bill of exchange obviously in this case, N100 will only be paid to Joro subject to the victory of John at the bye election. It is not a valid bill of exchange. Section 47 (1) Bill of Exchange Act Cap. B8, Laws of the Federation of Nigeria, 2004.
Where a person is in possession of a bill of exchange and the drawee named on it is fictitious, the holder of the bill has an option to treat the either as a bill of exchange or a promissory note. The facilities name of the drawee does not make the bill void. SECTION 55 (2) BILL OF EXCHANGE ACT CAP B8 LFN 2004
Of course the bank will be liable for the amount paid to “Y” on the strength of the cheque. This is because, the cheque is drawn payable to Q, a person who exist. As such, where Y fraudulently gets in possession of the cheque and cashed out on the strength of the cheque, the bank will be liable for failure to exercise reasonable care and skill. The bill is not one payable to the bearer. See NORTH & SOUTH WARES BANK LTD V MACBETH (1908) AC 137
Yes, you can transfer a bill of exchange to Y as payment for goods bought. This is called Negotiation of Bill. Negotiation of bill is effected when a bill is transferred from one person to another in such a way that the person to whom it is transferred becomes the holder of the bill. Where the bill is a bearer bill, you just have to give it to “Y” for goods bought and a valid negotiation will be said to have occur. However, where the bill is made payable to you (X) then you will have to transfer same to Y. See SECTION 31 (1) BILL OF EXCHANGE ACT CAP. B8 LFN 2004 SECTION 32 (1) BILL OF EXCHANGE ACT CAP. B8 LFN 2004.
The endorsement required for the negotiation or transfer of a bill is usually made on the back of the bill. A mere signature is enough to show endorsement, if there is no space on the bill for endorsement for some reason, you can attach a slip of paper to the bill and endorse it. Endorsement of bill will be proper and valid negotiation; i. Where it transfer the entire amount of the bill ii. Where a bill payable to 2 or more persons who are not in partnership endorse the bill themselves or by one person acting on behalf of all of them having been granted authority to do some. iii. Where a bill is payable to order, and the payee or endorsee is wrongly designated, or has his name misspelt, such payee may endorse the bill and his proper signature if he likes. See SECTION 32 BILL OF EXCHANGE ACT CAP. B8 LFN 2004.
If two or more endorsements appear on a bill, each endorsement is assumed to have been made in the other in which it appears in the bill except it can be shown otherwise. See SECTION 32 (d) BILL OF EXCHANGE ACT CAP B8 LFN 2004.
Yes, you can address a bill to two (2) or more drawees even where the drawees are not partners. However, you can only do this one the condition that it is not addressed to them in the alternative or in succession to one another. SECTION 6(2) BILL OF EXCHANGE ACT CAP B8 LFN 2004.
Where a bill is said to be payable on demand, it means that the bill will be paid at sight or upon presentation by the drawee. Where no time for payment is expressed on the bill, it is usually one payable on demand. So also, where a bill is accepted or indorsed when it is overdue, such bill shall be regarded as one payable on demand. So also, where a bill is accepted or indorsed when it is overdue, such bill shall be regarded as one payable on demand with respect to the person who so accepts or indorsed. SECTION 10 BILL OF EXCHANGE ACT CAP B 8 LFN 2004
No, the bill will not be valid as a bill of exchange as the amount in the bill is not stated as such uncertain. One requirement of a valid bill is that the sum payable must be certain. SMITH v NIGHTINGALE (1818) 2 STARKE 375
A thing is said to be done in good faith where it is done honestly without notice of any fraud or defect, not minding whether it was done negligently carelessly or not. However a holder of a bill will not be said to have purchase it in good faith where purchase same at a price so small, that it is reasonable to view the act as one done in bad faith. See RAPHAEL v BANK OF ENGLAND (1885) 17CB 161. JONES v GORDEN (1877) 2 AC 616.
Yes the bill is valid however, where there is discrepancy between the sum payable in both words and figures, the two will be resolved in favour of the amount expressed in words. SECTION 9 (2) BILL OF EXCHANGE ACT CAP. B8 LFN 2004
A bill of exchange is said to be accepted by the drawee upon presentment when the drawee writes on the bill that the bill has been accepted and signed by the drawee. See SECTION 17 (1) (a) BILL OF EXCHANGE ACT CAP B8 LFN 2004.
Except where the drawee fails to indicate that the bill is accepted by writing same on the bill and also fails to sign the bill then the bill will be valid. The signature of the drawee on the bill is enough to indicate that the bill is accepted. See SECTION 17 (2) (a) BILL OF EXCHANGE ACT CAPB8 LFN 2004.
Yes, there are certain conditions you have to follow to issue a valid bill of exchange; i. It must be in writing ii. It must be addressed by one person to another iii. The name of the drawee must be stated with reasonable certainly. iv. It must be signed by the person giving it v. The amount stated in the bill must be certain vi. The amount on the bill must be payable at a fixed period after the occurrence of a specified event which certain to happen though the time of it happening may be uncertain. vii. Where a bill is not payable to the bearer it must be payable to a payee who must be named on the bill See Sections 6, 7, 9 (1) Bill of Exchange Act Cap. B8, Laws of the Federation of Nigeria, 2004. SMITH v NIGHTINGALE (1818) 2 STARKE 375.
No, the bill is not valid as a result of the uncertainty of time. For a bill of exchange to be valid with respect to date or time, such bill must be payable at a future time which is determinable. It is important that the period a bill is payable must be fixed. See WILLIAMSON v RIDER (1962) 2 ALL E.R 268.
This depends on whether the bill states the date when the interest will start to run, where the bill is silent on the date, the interest shall begin to run from the date on the bill. When the bill does not have a date i.e where the bill is undated, then the date of the bill will be the date it was drawn. Section 9 (3) BILL OF EXCHANGE ACT CAPB8 LFN 2004.
No, the bank will not be liable to pay the amount withdrawn by “Y” on the strength of the bill not withstanding that the bill was made payable to a person who does not exist and not to “Y” where a bill is drawn in favour of a person who does not exist, it is assumed that the bill is payable to the bearer of the bill, in the case “Y”. See BANK OF EGNLAND v VAGUNO, P & Co. (1891) AC 107; GUTTON v ATTENBOROUGH & Co. (1897) Ac 90. SECTION 7(3) BILL OF EXCHANGE ACT CAP B8 LFN 2004.
You don’t have to be afraid, a cheque is a bill of exchange and a bill of exchange is not invalid by reason that it is not dated. Moreover the presumption is that the date on a bill is the true date of drawing, acceptance or endorsement as the case may be. See SECTION 3 (4a) BILL OF EXCHANGE ACT CAP B8 LFN 2004. SECTION 13 (1) BILL OF EXCHANGE ACT CAP B8 LFN 2004.
X need not to be worried as X is an holder in due course” a holder in due course is one who has taken a bill, complete and regular on its face under the following condition: a. That he became the holder of the bill before it was overdue and without notice that it has been previously dishonoured if such was the fact b. That he took the bill in good faith and for value and that at the time the bill was “negotiated” to him he had no notice of any defect in the title of the person who negotiated it to him. See SECTION 29 (1) BILL OF EXCHANGE ACT CAP. B8 LFN 2004.