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Section 110: Acceptance not specifying for whose honor it is made

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 109 All 148 Sections of Negotiable Instruments Act Section 111

Legal Commentary & Landmark Judgments: Section 110

Section 110 enacts a statutory presumption regarding acceptance for honour, providing that where an acceptance for honour does not specify for whose honour it is made, it is deemed to be made for the honour of the drawer.

  • Statutory Presumption of Drawer Honour: If the written acceptance omits the name of the party, the law conclusively presumes it was made for the drawer.
  • Protection for Intermediate Indorsers: Assumes the intervention was intended to protect the root of the instrument (the drawer).
  • Clarity in Commercial Records: Eliminates uncertainty regarding who the acceptor for honour may seek reimbursement from upon payment.
Key Landmark Precedents:
  • Hoare v. Cazenove (1812): Established that a general acceptance for honour defaults to the protection of the drawer under commercial custom.
  • Williams v. Germaine (1827): Affirmed that an acceptor for honour under Section 110 retains an automatic right of reimbursement against the drawer.
Courtroom Practice & Strategic Litigation Guidance:

If an acceptor for honour intends to protect a specific indorser (e.g., an affiliated distributor) rather than the drawer, they MUST explicitly name that indorser under Section 109. If omitted, Section 110 defaults to the drawer, altering indemnity rights.

Section 109 All 148 Sections of Negotiable Instruments Act Section 111