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Section 109: How acceptance for honor must be made

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 108 All 148 Sections of Negotiable Instruments Act Section 110

Legal Commentary & Landmark Judgments: Section 109

Section 109 specifies the formal method of acceptance for honour, enacting that the acceptor must write on the bill an acceptance declaring that they accept for the honour of a named party, and sign it.

  • Written Declaration on Bill: Must be in writing on the physical bill, stating 'accepted supra protest for honour of [Name]'.
  • Signature of Acceptor: Must be duly signed by the acceptor for honour or their authorized attorney.
  • Specification of Party: Should explicitly designate the party for whose honour the acceptance is made.
Key Landmark Precedents:
  • Gazette v. Cazenove: Held that a vague signature without declaring acceptance for honour does not satisfy the statutory mandate of Section 109.
  • Mitchell v. Baring (1829) 10 B & C 4: Discussed the formal drafting requirements for valid commercial acceptances supra protest under Section 109.
Courtroom Practice & Strategic Litigation Guidance:

When drafting an acceptance for honour, use standard statutory language: 'Accepted supra protest for the honour of Drawer [Company Name], [Signature of Acceptor]'. Precise wording avoids disputes regarding the nature of the undertaking.

Section 108 All 148 Sections of Negotiable Instruments Act Section 110