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Banking and Finance Law

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Journal

1942

Negotiable Instruments Law

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Full-Text Articles in Law

Bills And Notes - Effect Of Unreasonable Delay In Presentment For Payment Of Demand Notes And Bills Of Exchange, Lloyd M. Forster Jan 1942

Bills And Notes - Effect Of Unreasonable Delay In Presentment For Payment Of Demand Notes And Bills Of Exchange, Lloyd M. Forster

Michigan Law Review

The Negotiable Instruments Law, section 71, provides: "Where [the instrument] is payable on demand, presentment must be made within a reasonable time after its issue, except that in the case of a bill of exchange, presentment for payment will be sufficient if made within a reasonable time after the last negotiation thereof." This section raises some extremely complex problems: (1) Can the discharge of the contractual liability of the drawer and all indorsers of a demand bill of exchange be indefinitely postponed by successive negotiations, each within a reasonable time after the last? (2) Can the liability of the drawer …