LawPage

Notes and Articles for Law students

User Tools

Site Tools


negotiable-instruments:liability-of-indorser

Link to this comparison view

Both sides previous revision Previous revision
negotiable-instruments:liability-of-indorser [2021/04/09 22:14]
127.0.0.1 external edit
negotiable-instruments:liability-of-indorser [2021/07/05 20:21] (current)
LawPage
Line 11: Line 11:
  
 ===== Position of the endorser ===== ===== Position of the endorser =====
-The indorser by his indorsement undertakes the final responsibility of payment in case of dishonour by the acceptor or drawee after due presentation provided he has notice of dishonour. His position is like that of a surety and he can be sued immediately by the holder in default of acceptance by the drawee or of payment by the drawer or acceptor and neither the drawer nor the acceptor need be impleaded in the suit and the plaintiff has a right to sue the indorser alone even when he is a guarantor at his option and the decree against the one is no bar to a suit against another. It has been held in a Calcutta case that a decree in which the liability of the indorser was made conditional upon failure to realise the amount from the drawer and the acceptor is illegal. The indorser is bound hy his indorsement notwithstanding any previous alteration of the instrument. Payment has, therefore, to be made according to the tenor of the instrument at the time of the indorsement. The indorser is also not permitted to deny, in a suit by a subsequent holder, the signature, or the capacity to contract of any prior party to the instrument. As the liability of the indorser arises out of the indorsement and not on the instrument, limitation against him, will, therefore, run from the time of the indorsement and will not be affected by any part payment by the maker to keep the instrument alive against him.+The indorser by his indorsement undertakes the final responsibility of payment in case of dishonour by the acceptor or drawee after due presentation provided he has notice of dishonour. His position is like that of a surety and he can be sued immediately by the holder in default of acceptance by the drawee or of payment by the drawer or acceptor and neither the drawer nor the acceptor need be impleaded in the suit and the plaintiff has a right to sue the indorser alone even when he is a guarantor at his option and the decree against the one is no bar to a suit against another. It has been held in a Calcutta case that a decree in which the liability of the indorser was made conditional upon failure to realise the amount from the drawer and the acceptor is illegal. The indorser is bound by his indorsement notwithstanding any previous alteration of the instrument. Payment has, therefore, to be made according to the tenor of the instrument at the time of the indorsement. The indorser is also not permitted to deny, in a suit by a subsequent holder, the signature, or the capacity to contract of any prior party to the instrument. As the liability of the indorser arises out of the indorsement and not on the instrument, limitation against him, will, therefore, run from the time of the indorsement and will not be affected by any part payment by the maker to keep the instrument alive against him.
  
 ===== Expressly excluding his liability ===== ===== Expressly excluding his liability =====