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The Noting changes levied on dishonour of an endorsed bill by the Notary Public are to be born by:
- a)Drawer of the bill
- b)Holder of the bill
- c)Endorser of the bill
- d)Person responsible for dishonour
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The Noting changes levied on dishonour of an endorsed bill by the Nota...
Explanation:
The Notary Public is a person authorized by the government to witness the signing of important documents, including bills of exchange. In case a bill of exchange is dishonoured, the Notary Public levies certain changes for the noting of the dishonour. The person responsible for the dishonour of the bill is liable to bear these charges.
Reasoning:
The liability for the changes levied on dishonour of an endorsed bill by the Notary Public depends on who is responsible for the dishonour. It is not fair to impose this liability on the drawer of the bill or the holder of the bill, as they may not be responsible for the dishonour. Similarly, the endorser of the bill may not be responsible for the dishonour, as they may have endorsed the bill in good faith. Therefore, the liability for the charges levied by the Notary Public should be borne by the person responsible for the dishonour.
Key Takeaways:
- The Notary Public can levy charges for noting the dishonour of an endorsed bill.
- The liability for these charges depends on who is responsible for the dishonour.
- The drawer, holder, or endorser of the bill may not be responsible for the dishonour.
- The person responsible for the dishonour should bear the charges levied by the Notary Public.
The Notary Public is a person authorized by the government to witness the signing of important documents, including bills of exchange. In case a bill of exchange is dishonoured, the Notary Public levies certain changes for the noting of the dishonour. The person responsible for the dishonour of the bill is liable to bear these charges.
Reasoning:
The liability for the changes levied on dishonour of an endorsed bill by the Notary Public depends on who is responsible for the dishonour. It is not fair to impose this liability on the drawer of the bill or the holder of the bill, as they may not be responsible for the dishonour. Similarly, the endorser of the bill may not be responsible for the dishonour, as they may have endorsed the bill in good faith. Therefore, the liability for the charges levied by the Notary Public should be borne by the person responsible for the dishonour.
Key Takeaways:
- The Notary Public can levy charges for noting the dishonour of an endorsed bill.
- The liability for these charges depends on who is responsible for the dishonour.
- The drawer, holder, or endorser of the bill may not be responsible for the dishonour.
- The person responsible for the dishonour should bear the charges levied by the Notary Public.
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The Noting changes levied on dishonour of an endorsed bill by the Nota...
Explanation:
Noting changes refer to the remarks made by a Notary Public on a bill of exchange when it is dishonored. The Notary Public records the reasons for non-acceptance or non-payment of the bill and sends a notice to the parties concerned.
When there is a dishonour of an endorsed bill, the Notary Public levies noting charges, which are the expenses incurred for noting the dishonour of the bill. The question is about who should bear the expenses of the noting charges.
The correct answer is option 'D,' i.e., the person responsible for dishonour. Here are the reasons why:
- The person responsible for dishonour is the one who has caused the bill to be dishonoured. It could be the acceptor, the drawee, or any other party who has defaulted in making the payment.
- The purpose of noting charges is to compensate the Notary Public for the expenses incurred in noting the dishonour of the bill. It would not be fair to burden the holder, drawer, or endorser of the bill with these expenses as they are not responsible for the dishonour.
- By making the person responsible for dishonour bear the expenses, it serves as a deterrent to defaulters and encourages them to fulfill their obligations. They will have to pay not only the amount of the bill but also the expenses incurred in noting the dishonour.
In conclusion, the person responsible for dishonour should bear the noting charges levied by the Notary Public. This ensures that the parties who have fulfilled their obligations are not burdened with additional expenses.
Noting changes refer to the remarks made by a Notary Public on a bill of exchange when it is dishonored. The Notary Public records the reasons for non-acceptance or non-payment of the bill and sends a notice to the parties concerned.
When there is a dishonour of an endorsed bill, the Notary Public levies noting charges, which are the expenses incurred for noting the dishonour of the bill. The question is about who should bear the expenses of the noting charges.
The correct answer is option 'D,' i.e., the person responsible for dishonour. Here are the reasons why:
- The person responsible for dishonour is the one who has caused the bill to be dishonoured. It could be the acceptor, the drawee, or any other party who has defaulted in making the payment.
- The purpose of noting charges is to compensate the Notary Public for the expenses incurred in noting the dishonour of the bill. It would not be fair to burden the holder, drawer, or endorser of the bill with these expenses as they are not responsible for the dishonour.
- By making the person responsible for dishonour bear the expenses, it serves as a deterrent to defaulters and encourages them to fulfill their obligations. They will have to pay not only the amount of the bill but also the expenses incurred in noting the dishonour.
In conclusion, the person responsible for dishonour should bear the noting charges levied by the Notary Public. This ensures that the parties who have fulfilled their obligations are not burdened with additional expenses.
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The Noting changes levied on dishonour of an endorsed bill by the Notary Public are to be born by:a)Drawer of the billb)Holder of the billc)Endorser of the billd)Person responsible for dishonourCorrect answer is option 'D'. Can you explain this answer?
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