CHAPTER VIII OF NOTICE OF DISHONOUR

Section 98: 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.

Questions on this section

2 questions in 6 of our papers cite Section 98. Try these from the free papers:

1. Under Section 98 of the Negotiable Instruments Act, 1881, no notice of dishonour is necessary in order to charge the drawer when:
2. Under Section 98 of the Negotiable Instruments Act, 1881, no notice of dishonour is necessary in which of the following cases? 1. To charge the drawers, when the acceptor is also a drawer. 2. In the case of a promissory note which is not negotiable. 3. When the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due. 4. When the holder and the party entitled to notice carry on business in the same place. Select the correct answer:

Practise questions on Negotiable Instruments Act, 1881