Question
In which of the following cases, notice of dishonour is
unnecessary? I. when it is dispensed by the party II. when the party entitled to notice cannot be found III. when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrumentSolution
Section 98 of NI Act: When notice of dishonour is unnecessary.—No notice of dishonour is necessary— (a) when it is dispensed with by the party entitled thereto; (b) in order to charge the drawer, when he has countermanded payment; (c) when the party charged could not suffer damage for want of notice; (d) when the party entitled to notice cannot after due search be found; or the party bound to give notice is, for any other reason, unable without any fault of his own to give it; (e) to charge the drawers, when the acceptor is also a drawer; (f) in the case of a promissory note which is not negotiable; (g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.
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