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      Question

      Under Section 108, acceptance of a bill for honour can

      be made only when the bill has been:
      A Drawn payable to bearer Correct Answer Incorrect Answer
      B Noted or protested for non-acceptance or for better security Correct Answer Incorrect Answer
      C Crossed generally Correct Answer Incorrect Answer
      D Paid in part by the drawer Correct Answer Incorrect Answer
      E Lost before maturity Correct Answer Incorrect Answer

      Solution

      Section 108 provides that when a bill of exchange has been noted or protested for non-acceptance or for better security, any person not already liable on it may, with the consent of the holder, accept the bill for the honour of any party thereto by writing on the bill. Such an acceptor for honour binds himself to pay if the drawee does not. This provision protects the credit of the party for whose honour acceptance is made.

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