Dishonour in United Kingdom

Definition of Dishonour

In accordance with the work A Dictionary of Law, this is a description of Dishonour :

(in commercial law)

Failure to honour a bill of exchange. This may be by nonacceptance, when a bill of exchange is presented for *acceptance and this is refused or cannot be obtained (or when *presentment for acceptance is excused and the bill is not accepted); or by nonpayment, when the bill is presented for payment and payment is refused or cannot be obtained (or when presentment is excused and the bill is overdue and unpaid). In both cases the holder has an immediate right of recourse against the drawer and endorsers, but *foreign bills that have been dishonoured must first be protested (See protest).

See also notice of dishonour.