Report No. 11
56. Liability of drawer or acceptor of a bill of exchange.-
(1) The drawer of a bill, by drawing it, engages that on due presentment it shall be accepted and paid according to its tenor, and that if it be dishonoured he will compensate the holder or any indorser who is compelled to pay it.1
[Section 30, part, modified'
(2) The drawee of a bill is not liable thereon until acceptance in the manner provided by this Act.
(3) The acceptor before maturity of a bill, by accepting it, engages that he will pay it according to the tenor of his acceptance and in default of such payment such acceptor is bound to compensate any party to the bill for any loss or damage sustained by him and caused by such default.2
[Section 32, part modified]
(4) The acceptor of a bill already indorsed is not relieved from liability by reason that such indorsement is forged, if he knew or had reason to believe the indorsement to be forged when he accepted the bill.
1. See section 55(1), BEA.
2. See section 54(1), BEA.