You sold a shipment of goods to ABC Company and received a bill of exchange for it. But now you find that the bill has been dishonoured. Can you sue ABC Company? What would your rights be in a court of law in this scenario?
Yes! We can sue the company. A notice that must be given by the holder of a bill of exchange to the drawer and to each endorser when the bill has been dishonoured; any drawer or endorser to whom notice is not given is discharged. The notice must identify the bill and state that it has been dishonoured by non-acceptance or non-payment. The notice must be given within a reasonable time of the dishonour (to which strict rules apply). Certain excuses are recognized for failure to give notice or delay.