Big Bank is unable to provide notice of dishonor for three days because a fiber optic cable was accidentally cut by a construction worker. Will Big Bank be liable for its failure to act in a timely manner?

Question

Law

Harrison Mcintyre

20 August, 20:21

Big Bank is unable to provide notice of dishonor for three days because a fiber optic cable was accidentally cut by a construction worker. Will Big Bank be liable for its failure to act in a timely manner?

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Answers (1)

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Thumper · Answer 1

Yes, big bank would be liability as long as due notice have been given according to the negotiable instrument act stated below

Explanation:

Section 30 of the negotiable instrument act of 1881 refer as such; Liability of drawer.-The drawer of a bill of exchange or cheque is bound in case of dishonour by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided.