Bills of Exchange Act (R.S.C., 1985, c. B-4)

Act current to 2017-03-20 and last amended on 2007-04-20. Previous Versions

Marginal note:Conditions for validity of notice

 Notice of dishonour in order to be valid and effectual must be given

  • (a) not later than the juridical or business day next following the dishonouring of the bill;

  • (b) by or on behalf of the holder, or by or on behalf of an endorser, who at the time of giving notice is himself liable on the bill;

  • (c) in the case of the death, if known to the party giving notice, of the drawer or endorser, to a personal representative if there is one and with the exercise of reasonable diligence he can be found; and

  • (d) in case of two or more drawers or endorsers who are not partners, to each of them, unless one of them has authority to receive notice for the others.

  • R.S., c. B-5, s. 97.
Marginal note:How notice given
  •  (1) Notice of dishonour may be given

    • (a) as soon as the bill is dishonoured;

    • (b) to the party to whom notice is required to be given or to his agent in that behalf;

    • (c) by an agent either in his own name or in the name of any party entitled to give notice, whether that party is his principal or not; or

    • (d) in writing or by personal communication and in any terms that identify the bill and intimate that the bill has been dishonoured by non-acceptance or non-payment.

  • Marginal note:Misdescription

    (2) A misdescription of the bill does not vitiate the notice unless the party to whom the notice is given is in fact misled thereby.

  • R.S., c. B-5, s. 98.
Marginal note:Form of notice
  •  (1) In point of form, the return of a dishonoured bill to the drawer or endorser is a sufficient notice of dishonour, and a written notice need not be signed.

  • Marginal note:Verbal supplement

    (2) An insufficient written notice may be supplemented and validated by verbal communication.

  • R.S., c. B-5, s. 99.
Marginal note:Notice by agent
  •  (1) Where a bill when dishonoured is in the hands of an agent, he may himself give notice to the parties liable on the bill, or he may give notice to his principal, in which case the principal on receipt of the notice has the same time for giving notice as if the agent had been an independent holder.

  • Marginal note:Time for notice

    (2) Where the agent gives notice to his principal, he must do so within the same time as if he were an independent holder.

  • R.S., c. B-5, s. 100.
Marginal note:Notice to antecedent parties

 Where a party to a bill receives due notice of dishonour, he has, after the receipt of the notice, the same period of time for giving notice to antecedent parties that a holder has after dishonour.

  • R.S., c. B-5, s. 101.
Marginal note:Benefit of notice

 A notice of dishonour enures for the benefit

  • (a) of all subsequent holders and of all prior endorsers who have a right of recourse against the party to whom the notice is given, where given on behalf of the holder; and

  • (b) of the holder and all endorsers subsequent to the party to whom the notice is given, where given, by or on behalf of an endorser entitled under this Part to give notice.

  • R.S., c. B-5, s. 102.
Marginal note:How notice addressed
  •  (1) Notwithstanding anything in this Act, notice of dishonour of any bill payable in Canada is sufficiently given if it is addressed in due time to any party to the bill entitled to the notice, at his customary address or place of residence or at the place at which the bill is dated, unless any such party has, under his signature, designated another place, in which case the notice shall be sufficiently given if addressed to him in due time at that other place.

  • Marginal note:Sufficiency of notice

    (2) A notice referred to in subsection (1) shall be sufficient, although the place of residence of such party is other than either of the places mentioned in that subsection, and shall be deemed to have been duly served and given for all purposes if it is deposited in any post office, with the postage paid thereon, at any time during the day on which presentment has been made or on the next following juridical or business day.

  • Marginal note:Death of party

    (3) The notice referred to in subsection (1) is not invalid by reason only of the fact that the party to whom it is addressed is dead.

  • R.S., c. B-5, s. 103.
Marginal note:Miscarriage in post service

 Where a notice of dishonour is duly addressed and posted, as provided in section 102, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office.

  • R.S., c. B-5, s. 104.
Marginal note:Excuse for delay
  •  (1) Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice and not imputable to his default, misconduct or negligence.

  • Marginal note:Diligence

    (2) Where the cause of delay in giving notice of dishonour ceases to operate, the notice must be given with reasonable diligence.

  • R.S., c. B-5, s. 105.
Marginal note:Notice dispensed with
  •  (1) Notice of dishonour is dispensed with

    • (a) when, after the exercise of reasonable diligence, notice as required by this Act cannot be given to or does not reach the drawer or endorser sought to be charged; or

    • (b) by waiver, express or implied.

  • Marginal note:Time of waiver

    (2) Notice of dishonour may be waived before the time of giving notice has arrived or after the omission to give due notice.

  • R.S., c. B-5, s. 106.
Marginal note:Dispensing with notice re drawer

 Notice of dishonour is dispensed with as regards the drawer where

  • (a) the drawer and drawee are the same person;

  • (b) the drawee is a fictitious person or a person not having capacity to contract;

  • (c) the drawer is the person to whom the bill is presented for payment;

  • (d) the drawee or acceptor is, as between himself and the drawer, under no obligation to accept or pay the bill; or

  • (e) the drawer has countermanded payment.

  • R.S., c. B-5, s. 107.
Marginal note:Dispensing with notice re endorser

 Notice of dishonour is dispensed with as regards the endorser where

  • (a) the drawee is a fictitious person or a person not having capacity to contract, and the endorser was aware of the fact at the time he endorsed the bill;

  • (b) the endorser is the person to whom the bill is presented for payment; or

  • (c) the bill was accepted or made for his accommodation.

  • R.S., c. B-5, s. 108.

Protest

Marginal note:Necessity of protest

 In order to render the acceptor of a bill liable, it is not necessary to protest it.

  • R.S., c. B-5, s. 109.
Marginal note:Protest dispensed with

 Protest is dispensed with by any circumstances that would dispense with notice of dishonour.

  • R.S., c. B-5, s. 110.
Marginal note:Delay excused
  •  (1) Delay in noting or protesting is excused where the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.

  • Marginal note:Diligence

    (2) Where the cause of delay in noting or protesting ceases to operate, the bill must be noted or protested with reasonable diligence.

  • R.S., c. B-5, s. 111.
 
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